CAF2 Model Overview Part1 V2 - FCCtransition.fcc.gov/wcb/tapd/universal_service/caf/CAF2... · 2012-09-13 · retail costs, structure sharing percentages, fiber‐copper cross‐over

CAF2ModelOverviewCostQuest Associates

DAY1,SESSION1

IntroductionUSF Primer

Modeling BackgroundModeling Attributes

Overview of CQBATDesign QuestionsWhat is itGeneral Assumptions

USF ModelsHistoryAdvancements

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DAY1,SESSION2

Overview of Economic UnderpinningsCostBasic financial modelNetwork DesignNetwork CapabilityAnnualizationGreenfield and Brownfield

CQBAT Platform OverviewCapturing Company and Geographic Specific attributesClassifying Service AreasDemand DevelopmentNetwork CapabilitiesExisting Broadband CoverageData SourcesThe Guts

Q/A

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DAY1,SESSION3

Input Review (and sources)CQBAT Network Capex Overview

Middle mileNetwork routingAssumptionsTesting

Telecom PlantReview Network Topology development Fttd –vs‐ FTTpAssumptionsWhat is in the CO

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DAY1,SESSION4

ACSQ/A

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DAY1,SESSION5

Network Capex Overview: session 2Network Topologies within CQBATSizing AssumptionsInterplay of User InputsShared cost allocation

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DAY2,SESSION1

Opex OverviewStructureDevelopment of Costs and Drivers

Treatment of areas outside the “mainland”Online CQBAT

Review of Run time parametersOverview Filter fieldsReportingReview Data DumpsReview Audit Reports

Q/A

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DAY2,SESSION2:11:00– 12:30

Review of current resultsWhat runs were filed with the FCCReport Results Maps

Key issues of a refresh with logic “as‐is”Use of 2010 CensusWire Center boundaries to useCustomer data to useExtent of existing broadband coverageRegional Adjustment refreshKey Assumptions to review

Q/A

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Property of CostQuest Associates, Inc. Any use without persmission is strictly prohibited

IntroductionCostQuestAssociates• Cincinnati– Seattle– WashingtonDC– Birmingham• Formedin1999• Internationallyrecognizedasleadingtelecommunication

networkmodeling,costingandprofitabilityexperts• BroadbandandUSFmodels:BAMusedbyFCCforNBP,CQBATbeing

consideredasnationalUSFmodel,CPMCalifornia,CPMHongKong,BCPM,NUSCAustralia,CostPro‐CoreNewZealand

• Loopmodel:CostProinusebycarrierswithoperationsinover35states,adoptedandwellreceivedbycommissionsinallUNEandTaxproceedings

• WirelessCosting:StateofWyoming(Fixed),CTIA,WirelessCarriersformorethan20states

• WirelessWork:USACFilings,AuditsandReviews,USAC/USFWorkshops,GISAnalysis,PolicySupport,CAF1AuctionModels

• Interconnectionmodel:CostPro‐CoreinusebytheNewZealandCommerceCommissiontosetrates

• Profitabilitymodels:COMPASS,MAPS,ProfitMap,CPMS,andMIDAS–economicbasedcontributionmodelsovervariousbusinessdimensions

• Globalexperienceindeveloping,supportingregulatoryandcompetitivepractices

•Economic Network Modeling•Mapping/GIS•Regulatory Support•Valuation/Costing•Profitability •Expert Testimony

•Economic Network Modeling•Mapping/GIS•Regulatory Support•Valuation/Costing•Profitability •Expert Testimony

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TheGoal

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TheGoal

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0

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Wire Center BoundaryFeeder Route

Central Office

DLC LocationAAN Location

LEGEND:

TelcoNetwork

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InterofficeRing

Host/Tandem Ring

“Cloud”

Red – Core network

• “Switch”

• Interoffice network

Yellow Box – Loop network

• DSLAMs

• Access network

“Switch”

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LocalLoop

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USFMODELINGBACKGROUND

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• What technologies will the model assume?• Will broadband be supported? At what speeds?• Is the network TDM or IP?• Is the network Fiber to the Prem or Fiber to a DSLAM?

• What percentage of customers purchase the service?• What is the take rate we assume? • Do we include POLR costs?

• What is the geographic unit of consideration?• ILEC wire centers, Study areas, or Census units?

• What is in and outside of the study?

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USFModelPolicyDecisions…aninitiallist

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USFBackgroundBackground• As most of you may be aware, the FCC’s current universal service system was established over fourteen years ago, with very few updates since its inception • At the time, the FCC had just released the Synthesis model as a modern tool for calculating telecommunications costs for purposes of supporting universal service

• However, the telecommunications landscape has changed dramatically and has left the funding mechanism outdated

• With new technology, methodology, and data, we’re poised to address these issues today

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USF“GoldenRules”CC Docket No. 96‐45 (FCC 97‐157), issued May 8, 1997, paragraph 250250. Criteria for Forward‐Looking Economic Cost Determinations. Whether forward‐looking economic cost is determined according to a state‐conducted cost study or a Commission‐determined methodology, we must prescribe certain criteria to ensure consistency in calculations of federal universal service support. Consistent with the eight criteria set out in the Joint Board recommendation, we agree that all methodologies used to calculate the forward‐looking economic cost of providing universal service in rural, insular, and high cost areas must meet the following criteria:1. The technology assumed in the cost study or model must be the least‐cost, most‐efficient,

and reasonable technology for providing the supported services that is currently being deployed. A model, however, must include the ILECs' wire centers as the center of the loop network and the outside plant should terminate at ILECs' current wire centers. The loop design incorporated into a forward‐looking economic cost study or model should not impede the provision of advanced services. For example, loading coils should not be used because they impede the provision of advanced services. We note that the use of loading coils is inconsistent with the Rural Utilities Services guidelines for network deployment by its borrowers. Wire center line counts should equal actual ILEC wire center line counts, and the study's or model's average loop length should reflect the incumbent carrier's actual average loop length.

2. Any network function or element, such as loop, switching, transport, or signaling, necessary to produce supported services must have an associated cost.

3. Only long‐run forward‐looking economic cost may be included. The long‐run period used must be a period long enough that all costs may be treated as variable and avoidable. The costs must not be the embedded cost of the facilities, functions, or elements. The study or model, however, must be based upon an examination of the current cost of purchasing facilities and equipment, such as switches and digital loop carriers (rather than list prices).

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USF“GoldenRules”4. The rate of return must be either the authorized federal rate of return on interstate services, currently 11.25

percent, or the state's prescribed rate of return for intrastate services. We conclude that the current federal rate of return is a reasonable rate of return by which to determine forward looking costs. We realize that, with the passage of the 1996 Act, the level of local service competition may increase, and that this competition might increase the ILECs' cost of capital. There are other factors, however, that may mitigate or offset any potential increase in the cost of capital associated with additional competition. For example, until facilities‐based competition occurs, the impact of competition on the ILEC's risks associated with the supported services will be minimal because the ILEC's facilities will still be used by competitors using either resale or purchasing access to the ILEC's unbundled network elements. In addition, the cost of debt has decreased since we last set the authorized rate of return. The reduction in the cost of borrowing caused the Common Carrier Bureau to institute a preliminary inquiry as to whether the currently authorized federal rate of return is too high, given the current marketplace cost of equity and debt. We will re‐evaluate the cost of capital as needed to ensure that it accurately reflects the market situation for carriers.

5. Economic lives and future net salvage percentages used in calculating depreciation expense must be within the FCC‐authorized range. We agree with those commenters that argue that currently authorized lives should be used because the assets used to provide universal service in rural, insular, and high cost areas are unlikely to face serious competitive threat in the near term. To the extent that competition in the local exchange market changes the economic lives of the plant required to provide universal service, we will re‐evaluate our authorized depreciation schedules. We intend shortly to issue a notice of proposed rule making to further examine the Commission's depreciation rules.

6. The cost study or model must estimate the cost of providing service for all businesses and households within a geographic region. This includes the provision of multi‐line business services, special access, private lines, and multiple residential lines. Such inclusion of multi‐line business services and multiple residential lines will permit the cost study or model to reflect the economies of scale associated with the provision of these services.

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USF“GoldenRules”7. A reasonable allocation of joint and common costsmust be assigned to the cost of supported

services. This allocation will ensure that the forward‐looking economic cost does not include an unreasonable share of the joint and common costs for non‐supported services.

8. The cost study or model and all underlying data, formulae, computations, and software associated with the model must be available to all interested parties for review and comment. All underlying data should be verifiable, engineering assumptions reasonable, and outputs plausible.

9. The cost study or model must include the capability to examine and modify the critical assumptions and engineering principles. These assumptions and principles include, but are not limited to, the cost of capital, depreciation rates, fill factors, input costs, overhead adjustments, retail costs, structure sharing percentages, fiber‐copper cross‐over points, and terrain factors.

10. The cost study or model must deaverage support calculations to the wire center serving area level at least, and, if feasible, to even smaller areas such as a Census Block Group, Census Block, or grid cell. We agree with the Joint Board's recommendation that support areas should be smaller than the carrier's service area in order to target efficiently universal service support. Although we agree with the majority of the commenters that smaller support areas better target support, we are concerned that it becomes progressively more difficult to determine accurately where customers are located as the support areas grow smaller. As SBC notes, carriers currently keep records of the number of lines served at each wire center, but do not know which lines are associated with a particular CBG, CB, or grid cell. Carriers, however, would be required to provide verification of customer location when they request support funds from the administrator.”

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BenefitsofaFLEC• The benefits of a properly developed forward looking economic cost (FLEC) model for universal service include:• Clarification of concepts of the least‐cost provider • Normalization of participants • Metrics and analytics to examine issues such as targeting, reserve levels for auctions, service definitional changes, etc..

• An avoidance of asymmetric embedded costs mechanisms• A less onerous process for stakeholders and policy makers• A clear link between defined service and costs developed• Superior incentives

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USFMODELINGATTRIBUTES 21

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ModelDefinitions• Every current universal program relies upon both a “cost model” and a “support model”

• Definitions:• “Cost Model”: A systematized collection of mathematical procedure that takes as inputs geographic and non‐geographic data and that produces an estimate of the cost of providing a telecommunications service

• “Support Model” : A mathematical procedure that takes cost and other factors as inputs and that produces a universal service support amount for a carrier or customer

• This is sometimes called a “support mechanism”

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ModelingIssues• Cost modeling issues

• Forward‐looking ‐vs‐ embedded costs• Modeling object• Technology choice• Source of input data• Accuracy of results• Reflecting an efficient carrier

• Support modeling Issues• Participants• Averaging of costs

• Statewide, Study Area• Benchmarks for support eligibility• State versus Federal portions

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CostModelBasics• Model Basics

• Cost = Investment * ACF + Direct Opex + Shared and Common • Components of Costs

• Investment Models: Loop, Switching, and Interoffice• Today’s focus is on the Loop

• History• Current approaches• Outputs

• Annual Charge Factor Models (not covered)• Depreciation, Taxes, Cost of Money

• Opex Models (not covered)• Operations, Shared, Common

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CostModelPolicyDecisions• What technologies will the model assume?

• Will broadband be supported? At what speeds?• Should any existing facts about carrier networks be recognized?

• Carrier nodes?• What assets lives for depreciation and cost of money should be used?

• Where facilities (such as poles) serve more than one utility, how should costs be allocated?• What geographic factors will be considered?

• Soils? Climate? Land cover?

• What percentage of customers will decline to purchase the service?• What scale should the cost output take?

• What is the geographic unit of consideration?• Is the ILEC wire center the proper unit? • Or should it be Study areas? Census units? Etc..

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• With regard to Support, model allows the ability to adjust the design attributes to understand the impact and make informed policy recommendations

• Key Parameters for Support can include;• Identify participants in the funding• Establishing a geographic basis for averaging (wire center, carrier, county, census block etc…)

• Establishing services included• Utilization of a cap• The benchmarks to be used for funding (revenue, cost, funding caps etc..)

• And extent of the benchmark• Determination of the Federal‐State portioning (what level of the fund is covered Federally and at the State level)

SupportModel

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SupportApproachFunding Approach

• “Big Bang” starts at a benchmark –stretches limit funds to most subscribers, but may not help highest cost subscribers

• “Sanded Ridge” starts at a cost cap –impacts the highest cost subscribers but may not be financial secure for providers

• Funding limit impact: raise benchmark, drop cap, or both

Big Bang

Sanded Ridge

Monthly Cost Cap

Funding Benchmark

ARPU

Unfunded, unprofitable

Unfunded – over the Cost Cap

Funding Exhaust Point

Funding Exhaust Point

Number of Subs

Fewer

More

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OVERVIEWOFCQBAT

High Level overview Review of General Assumptions Overall Design

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WhatisCQBAT• The CostQuest Broadband Analysis Tool or CQBAT

• Overall Design• Scorched node• Forward looking• New network built to all locations (POLR)• Active customers hooked up with broadband service

• Contemporary / real‐world wireline systems engineering standards are used for the modeling of the networks

• More specifically, the use of industry standard engineering practices for landline deployments are used because they have been tested and confirmed against forward‐looking standards in a wide array of regulatory proceedings and field tests

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WhatisCQBAT• The CostQuest Broadband Analysis Tool or CQBAT

• The model employs long standing capacity costing techniques to estimate economically rational augmentation investments reflecting real world engineering capacity exhaust dynamics

• Network build out will be based on deployment from known/existing LEC COs

• The current service provider will continue to supply the service area• Smaller companies have the opportunity to join purchasing agreement

with other small companies reducing scale economies• Coverage

• Cable coverage based on SBDD• Wireless coverage based on SBDD• Telco coverage based on SBDD

• Network• IP based network• Focus on cost of data "Pipe“• No Video gear (including STB) installed• No Voice Gateway installed

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WhatisCQBAT• The CostQuest Broadband Analysis Tool (CQBAT) helps to answer: • What new network facilities will need to be built to provide sustainable/affordable access?

• What will it cost to deploy those networks?• What will it cost to operate those networks?• Where is support required to encourage and support build outs?• Will the resulting business opportunities make economic sense?

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CQBATAssumptions• What take rate should be used?

• 90%• Should a steady state be used for demand ‐ or should a growth factor (or loss factor) in

customer take rate be included over some mid‐term time period ‐ 5 to 10 years? • Keep it simple

• Size the OSP network (e.g., Fiber, copper, terminal locations) to serve all potential customers• Size the Hardwired/Common equipment to serve the maximum expected demand, along with

some engineering fill factor• Size success based capital (e.g., Line cards, modems, etc..) to the levelized demand (along with

some spare capacity) • What Cost of Money should be used?

• 9%• Should capital and operational cost inputs be varied by region?

• Yes…see RegionalCostAdjustment table• What gauge copper should be used for the distribution plant?

• Use 24 gauge in all cases• How should the cost be unitized?

• By Active Customers• How do we classify companies to size

• Based on user controlled inputs…see OCNCoSize discussion

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CQBATAssumptions• How should plant mix be determined?

• Vary by density and network type…see PlantMix table

• Do we run Drops to all households or only Active customers? • Only to Working locations

• Should we adjust capex cost to capture purchasing power?• Provide functionality ‐ but assume no difference

• What is the Busy Hour Bandwidth we should build to • Used levelized approach that covers basic data requirements …video and voice products are NOT being

modeled

• How do we share the network cost with business services• Based on services demanded and capacity cost approach to apportionment

• What services should be modeled to businesses?• See "Service‐Customer Creation" rules in later session

• What are the design Rules for copper and fiber designs• See "CopperDesign" and "FiberDesign" rules in later session

• What lives of assets should be used?• Use values used in BAM, which are within the FCC life range

• Where do we stop modeling the network• From Customer demarcation to Router on the “Cloud”

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CQBATDesign

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COMPARISONTOPRIORUSFMODELINGAPPROACHES

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HistoricalUSFModels• History

• BCM• CPM• BCPM• Hatfield ‐‐ > HAI• Synthesis Model

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TheFCC’sCurrentModel• History

• The FCC’s “Synthesis Model” – Released and implemented in 1999

• BCPM and HAI were reviewed as potential models• Are still used in a number of states

• Synthesis model contained • New FCC developed loop model – HCPM• HAI switching and transport• Flavors of the BCPM

• Blending and testing performed by FCC staff• In 2003, the models underlying code was changed from TurboPascal to Delphi

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TheFCC’sCurrentModel• Major Data Inputs

• Customer locations • Line counts

• Switched – residential and business• Special access

• Other geographic data• Soils• Depth to bedrock

• Cost tables for purchase and installation of equipment, operation of networks

• ARMIS data used to derived operational costs

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TheFCC’sCurrentModel• Service provided:

• From established central office locations• Using twisted pair wireline technology• Provides access to advanced services by limiting wire runs to about 18kft

• Advanced services at the time of the model development was 28.8kbps modem service

• Can support DSL deployment but not designed nor does it contain all the electronics for DSL

• Customers equally distributed along roadways• Network Assumptions:

• Feeder plant built along the four cardinal compass points, not roadways.• Assume that unit cost of business and residential switched lines has equal cost

• Assume special access voice‐equivalent channels have a uniform cost that bears a nationally uniform relationship to switched circuit cost

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SM:ClusteringCustomerstoformEngineeringAreas

Material courtesy of William Sharkey (FCC)

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SM:GridOverlayforEveryServingArea(Cluster)

Microgrid


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SM:FeederNetwork


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SM:DistributionNetwork


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TheFCC’sCurrentModel• Cost Model Outputs

• The Synthesis Cost Model produces a cost, per line, of providing universal service, averaged by wire center

• Results are subsequently rolled up to a statewide average

• Cost output details are shown for various kinds of investment and expenses

• Alternative possible outputs are cost averaged by density zone• Today, the Synthesis Cost Model outputs are used primarily as inputs to the Support Model for non‐rural carriers

• Has been used in some UNE proceedings

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BCPM:Grids,CSAs,andQuadrantDistributionPlant

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Ultimate Grid

Road Centroid

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Ultimate Grid Quadrant

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Road Centroids and Distribution Quadrants

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HAI5.0:DistributionRouting• HAI Distribution:

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ThenandNow

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ADVANCESINNETWORKMODELING…Network Cost Models “Then” and “Now”

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AdvancementsinNetworkModeling

• Improved customer locations• Improved ability to match engineering designs and constraints• Improved network routing• Improved ability to vary the service delivered…broadband designs

• Ability to model multiple terrestrial networks

…In general, a more realistic, flexible network design resulting in more accurate cost estimates and improved information for decision makers

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THEN…FCCModelMethodsforCustomersandEngineeringDesign

Microgrid


Cluster formation Customer locations and engineering design

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NOW…CQBATCustomerandRoadDataILEC Wire Center service area with geocoded customer locations and roads

Geocoding success relies on the quality of the address data and the quality of the geocoding databases. On average we typically achieve 80-95% success rates to the street segment.

For those records that do not geocode, we fall back to an accepted process of surrogation to the roads within a Census Block.

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NOW…CQBATEngineeringDesign/Clusters

Network Node locations are based upon user inputs and general network design principles

Picture captures network nodes with red dashed line representing Road Based Clusters

Legend: – Digital Loop Carrier – Copper fed X-Box – Pedestal

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Clustering– CQBATRoadbasedClusterversusMST

FCC’s SM used a Minimum Spanning Tree (MST)

CQBAT uses a Road Based Spanning Tree (MSRT)

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THEN…FCCModelNetworkRouting


Rectilinear Distribution Design Rectilinear Feeder Design

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NOW…RoadBasedNetworksRoad based design of wire center on prior chart

Material courtesy of William Sharkey (FCC) and Jeff Prisbrey

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NOW…CQBATRoadBasedNetwork

Legend: – Digital loop carrier – Copper Fed X-Box – Pedestal – Fiber Feeder

– Copper Feeder – Distribution

Designed Network with overlaid cabling, no roads shown

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57

DistributionRoutingandDesign

0.20.10

miles

DLC LocationFDI Location

Roads

Minimum SpanningRoad Tree

DT/BT Locations

LEGEND:

0

miles

0.20.1

DLC LocationFDI Location

Roads

Minimum SpanningTree

DT/BT Locations

LEGEND:

0.10

miles

0.2

Grid Boundary

Distribution RouteRoads

DT LocationLEGEND:

CQBAT MST (similar to HCPM) HAI5.0

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THEN…BroadbandNetworkDesign

58…Advanced services at time of development ‐ 28.8kbs modem service

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WirelineArchitecture

59

THEN…Voice Network – Current USF model design The need for a fatter “pipe” to the customer

NOW…FTTd/n Network NOW…FTTc/p Network

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NOW…CQBATBroadbandNetworkDesigns

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FTTd/n Network FTTc/p Network

Granularity– SubWireCenterDetailCensus Block Cost Surface‐ Darker = higher cost

With the ability to develop cost at any level within a wire center, cost surfaces can be developed that represent the average costs of customers within the selected geographic bands

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FCCSMVersusCQBATSummary

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CQBATFCC Synthesis Model

Estimate forward-looking investment supporting basic local service for USF Y YEstimate forward-looking investment supporting broadband for USF Y NModel “existing node” wireline network Y NModel “scorched node” wireline network Y Y


Model designs network to service locations Y NModel moves service locations to designed network N YModel locates census data uniformly in Census Block N YModel locates census data via random controlled placement on "livable" road segments Y N


Customer serving areas based on minimum spanning road tree path distance rather than rectilinear distance Y N


Model assumes all cable routes explicitly follow actual roads in wire center Y NModel determines shortest road path for all cable routes Y NModel “lays” cable from central office to each service location Y N

General

Customer Location

Customer Aggregation - Clustering

Cable Routing

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Model can engineer broadband service Y NDynamic DSLAM sizing Y NPedastals placed at the center of idealized lots to optimize locations to pedastal N YPedastals placed along the road to serve customers within engineernig parameters Y NVariable maximum copper loop distance Y YCentral Office Terminal sharing Y NAll Fiber Feeder Network Y NUse of copper T1 to feed small DLCs N YCopper gauge crossover Y YFiber to the Prem (FTTp) option Y NService specific network design Y NHiCap Network overlay Y NAllocation of cost only on pair equivalents N YAllocation of cost based on best identified cost driver Y NCapital Cost conversion to COM, Tax and DEPR Y YUse of levelized cost Y Y

Engineering and Economics

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Model can report cost by Wire Center Y YModel can report cost by County Y NModel can report cost by CBG Y NModel can report cost by CB Y NModel can report cost by sub-CB Y N


Model provides variable Benchmark and Caps to develop Support Y NModel provides ability to roll up on PC and RoR company level Y YModel provides ability to filter out "served" CBs Y NModel can report cost by CB Y NModel can report cost by sub-CB Y N


Access to service location data via Protective Order Y YInspection of model and logic Y YAccess to a test dataset for testing Y YPC based Model N YOnline access Y N

Model Distribuiton and Access

Support

Geographic Detail

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ISSUESWITHHISTORICALMODELS–DOTHEYSTILLEXIST?

65

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RuralTaskForceIssueswithFCC’sSM/HCPM• The Rural Task force evaluated the Synthesis Model based on the FCC’s own 10 criteria and additional criteria

• Using these criteria, the Rural Task Force found major issues with the FCC’s Synthesis Model and recommended that it not be used

• Their summarized concerns with the FCC’s platform are as follows:• Modeled lines differed significantly from actual lines• Modeled route miles varied significantly from actual route miles• Modeled plant installed did not line up with actuals• Wire Center Areas and boundaries in the model did not match up to actuals

• Model underestimated Switching investment• Modeled General Support investment varied significantly compared to actual

• Model underestimated Network Operations costs• The use of a Statewide Average cost was inappropriate

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Q/A

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OVERVIEWOFCQBATECONOMICUNDERPINNINGS

Basic financial modelLevelizationAnnualization

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WhatisCost?• “Cost” is a word used in many ways –• In economics, all costs are opportunity costs

• Costs are caused by the contemplation of a decision, the action implementing the decision, and the consequences of that decision

• When a business takes an action, resources are either used up, or committed to one use rather than another

• It is the value of that “other use” that is cost

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EconomicDefinition• Cost:The value of resources that will be either: 1) used up; or 2) committed to (or a portion of the capacity of the resource is committed to) a use (for a period of time) … because of my decision and consequent action

• By its nature, • Forward‐looking• Focus on cost causation• Opportunity cost‐based

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CapacityCosting:TheBasicsFrom client study

DSX‐1 Panel material price $12,600Number of DS1 ports available (physical capacity) / 840Material price per DS1 per port $ 15.00

Number of DS0 ports available per DS1 (phys cap) / 24Material price per DS0 per port $ .625

Utilization Factor (usable capacity) / .85Utilized Material Price per DS0 Port (at capacity) $ .735

Circuit Annualization Factor x 0.18

Annual Cost 0.13

Monthly Cost 0.011

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WorkingCost:TheBasicsFor TELRIC and TSLRIC studies, we may utilize working units to unitize rather than total available capacity

DSX‐1 Panel material price $12,600Number of DS1 ports used (used capacity) / 420Material price per DS1 per port $ 30.00

Average number of DS0 working / 15Material price per working DS0 per port $ 2.00

Circuit Annualization Factor x 0.18

Annual Cost 0.36

Monthly Cost 0.03

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CQBAT– EconomicUnderpinnings

• Basic Financial Model• Forward Looking Economic Cost (FLEC) model• Consistent with Total Element Long Run Incremental Cost methods – UNE Proceedings

• Scorched node• Only the Central office locations and the association of customer locations

to the CO remain

• Long Run Incremental Analysis• Greenfield and Brownfield Options• Includes Shared and Common Costs

• Cost Attribution based on TELRIC methods

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CQBAT– EconomicUnderpinnings

• Basic Financial Model• Model develops Investments and Associated Annual Capital Costs and Operating Expenses

• Capital Costs – Depreciation, Cost of Money, Income Taxes• Equal Life Group Depreciation / Survivor Curves• Economic lives based on FCC proposed ranges established in 1999

• Operating Expenses – Plant Specific, Non‐Plant Specific, Customer Operations, G&A, Uncollectibles

• Levelized, Annualized Cost approach• Levelized over a planning period

• Uses annual charge factors for Depreciation, Cost of Money and Taxes

• Comparable to a business case, but stated as the average across the periods – the “Steady State”

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“SteadyState”modelreducesnumberofexplicitassumptionsandsimplifiesmodeling

Revenue‐Network ops=Contribution‐Overhead=EBITDA‐Capex‐Int & tax=Cash flow

Simplified cash-flow statementDiscounted to a single column

$100

$50

$50

$25

$25

$15

$10

$5

Explicit assumptions

Average ARPU

Average subs

$10

10

05

10152025

0 5 10 15 20Year

Average 10

Implicit assumptions

Year

20191817161514131211109876543210

Total discounted capex 15

Capex by year

Captures Earnings and Taxes related

to Equity

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LevelizedCosts• Levelized Unit Costs

• Has its roots in pricing• Capital costs are levelized to produce a constant annual cost throughout the life of each asset

• Depreciation – with ELG, each account’s depreciation expense gradually declines over time as short‐lived assets are depreciated and longer‐lived assets remain

• Cost of Money (Return) gradually declines over time as the investment is depreciation

• Income Tax is estimated as a return on the equity portion of return so it declines also

• Levelization is a “smoothing” method using time value of money principles to develop a constant annual cost to set price or for comparison to revenues

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ImpactofLevelization

$33.00

$34.00

$35.00

$36.00

$37.00

$38.00

$39.00

$40.00

$41.00

$42.00

$43.00

Year 1 Year 2 Year 3

Depr+COM

Levelized Cost

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LevelizationExample

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Upfront Investment 100,000.00 COM 11.25%Simple annual depreciation - Frame 10.00%Simple annual depreciation - Plugs 20.00%Taxes 0 simplifying assumption

1 2 3 4 5 6 7 8 9 10 NPV Levelized ACFNew System GrossCapital 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 - Frame last 10 years Depr 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 $29,140.01 $5,000.00 5.00%

Net Capital 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 COM 5,625 5,063 4,500 3,938 3,375 2,813 2,250 1,688 1,125 563 $20,859.99 $3,579.27 3.58%

- Plugs last 5 GrossCapital 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Depr 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 $58,280.02 $10,000.00 10.00%Net Capital 50,000 40,000 30,000 20,000 10,000 50,000 40,000 30,000 20,000 10,000 COM 5,625 4,500 3,375 2,250 1,125 5,625 4,500 3,375 2,250 1,125 $21,060.64 $3,613.70 3.61%

TOTAL GrossCapital 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Depr 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 $87,420.03 $15,000.00 15.00%Net Capital 100,000 85,000 70,000 55,000 40,000 75,000 60,000 45,000 30,000 15,000 COM 11,250 9,563 7,875 6,188 4,500 8,438 6,750 5,063 3,375 1,688 $41,920.63 $7,192.97 7.19%

Annual cost 26,250 24,563 22,875 21,188 19,500 23,438 21,750 20,063 18,375 16,688 $129,340.66 $22,192.97 22.19%

Alternative approach: Money borrowed from Lender -balloon payment at the end. Loan requires 11.25% return.

1 2 3 4 5 6 7 8 9 10 NPV Levelized ACFGrossCapital 100,000 100,000 100,000 100,000 100,000 150,000 150,000 150,000 150,000 150,000 DeprNet Capital 100,000 100,000 100,000 100,000 100,000 150,000 150,000 150,000 150,000 150,000 COM 11,250 11,250 11,250 11,250 11,250 16,875 16,875 16,875 16,875 16,875 $77,688.20 $13,330.16 13.33%Capital Repay 0 0 0 0 0 0 0 0 0 150000 $51,652.47 $8,862.81 8.86%

Annual cost 11,250 11,250 11,250 11,250 11,250 16,875 16,875 16,875 16,875 166,875 $129,340.66 $22,192.97 22.19%

Year 1

Year 1

Approach used in CQBAT: Upfront capital asset that requires 11.25% return. Value of asset degrades over time (as represented by Depr). Asset degradation is captured back in price of service and paid back to Lendor (much like a car loan)

LevelizedCostsvsBusinessCase• Similarities

• Both identify Capital and Expenses• Both use Time Value of Money Concepts in presenting results

• CQBAT captures the onetime capital expenditures (Greenfield or Brownfield) and associated expenses and uses levelization to develop a single levelized cost that is constant over the study period for easy comparison to revenues, or to a benchmark• Capital expenditures are converted to annual costs using levelized annual

cost factors using time vale of money concepts (NPV)

• Business case captures yearly variations in revenues, capital expenditures and expenses over the study period and typically concentrate on cash flows• Business cases typically produce annual results (income statement format)

but also use time value of money to produce outputs for the study such as Internal Rate of Return (IRR) and NPV using discounted cash flows (annual outflows vs inflows discounted by a discount rate)

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DerivationofTaxes

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Capital (For Project) Rate 1st Year Interest Ist Year Depr Tax RequirementDebt 500 6.0% 30 50 0Equity 500 16.5% 82.5 50 52.75 <<<This is how we calculate tax requirement

112.5 100 52.75

Project Revenue + Subsidy 465.25 Opex (made up) 200.00 Depr 100.00 EBIT 165.25 Interest 30.00 EBT 135.25 Taxes 52.75 income 82.50

Taxes in the model represent the income taxes associated with the return on equity ‐‐ earnings

DeferredTaxes

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Capital Calculations

Econ Life= 10FNS= 0%FedTaxRate 35%Tax Life= 5Rate of Return 0.1125Convention Mid-Year

Year

Beginning of Period Capital

Book Depreciat

ion

Tax Depreciat

ionDeferred

Tax

End of Period Capital

Rate of Return

Total 1.0000 1.0000 0.0000 0.0568

1 1.0000 0.0500 0.2000 0.0525 0.8975 0.10672 0.8975 0.1000 0.2000 0.0350 0.7625 0.09343 0.7625 0.1000 0.2000 0.0350 0.6275 0.07824 0.6275 0.1000 0.2000 0.0350 0.4925 0.06305 0.4925 0.1000 0.2000 0.0350 0.3575 0.04786 0.3575 0.1000 0.0000 -0.0350 0.2925 0.03667 0.2925 0.1000 0.0000 -0.0350 0.2275 0.02938 0.2275 0.1000 0.0000 -0.0350 0.1625 0.02199 0.1625 0.1000 0.0000 -0.0350 0.0975 0.0146

10 0.0975 0.1000 0.0000 -0.0350 0.0325 0.007311 0.0325 0.0500 0.0000 -0.0175 0.0000 0.0018

With the difference between book and tax depreciation, there is a need to capture the impact of deferred taxes

Annualization• Annual Capital Costs

• Depreciation, Cost of Money and Income Tax parameters are user adjustable in CQBAT

• Depreciation • Economic lives from the range of lives established by the FCC in 1999 (CC Docket

98‐137)• Equal Life Group (ELG) –depicts fact that not all equipment will live exactly the

account average life; use of Gompertz‐Makeham survivor curves to split each account into groups of equal lives for depreciation purposes

• Annual Depreciation expense for each account is levelized to develop constant depreciation rate over the account life

• ROR (or Cost of Money) – the weighted average cost of capital applied to the investment and levelized over the life of the account

• Income Taxes –federal and state income taxes applied to equity portion of the ROR, adjusted for deferred taxes and levelized over the life of the account

• Accomplished by producing Levelized Annual Capital Cost Factors and applying to forward‐looking investments to produce levelized annual capital costs

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Annualization• Annualized Costs

• Levelized annual costs are easy to compare to a benchmark; Business case cash flows are not comparable to a benchmark

• Levelized annual costs provide for a constant cost over time and, thus, a constant funding need when compared to a benchmark

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ACFExample

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Upfront Investment 100,000.00 COM 11.25%Simple annual depreciation - Frame 10.00%Simple annual depreciation - Plugs 20.00%Taxes 0 simplifying assumption

1 2 3 4 5 6 7 8 9 10 NPV Levelized ACFNew System GrossCapital 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 - Frame last 10 years Depr 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 $29,140.01 $5,000.00 5.00%

Net Capital 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 COM 5,625 5,063 4,500 3,938 3,375 2,813 2,250 1,688 1,125 563 $20,859.99 $3,579.27 3.58%

- Plugs last 5 GrossCapital 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Depr 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 $58,280.02 $10,000.00 10.00%Net Capital 50,000 40,000 30,000 20,000 10,000 50,000 40,000 30,000 20,000 10,000 COM 5,625 4,500 3,375 2,250 1,125 5,625 4,500 3,375 2,250 1,125 $21,060.64 $3,613.70 3.61%

TOTAL GrossCapital 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Depr 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 $87,420.03 $15,000.00 15.00%Net Capital 100,000 85,000 70,000 55,000 40,000 75,000 60,000 45,000 30,000 15,000 COM 11,250 9,563 7,875 6,188 4,500 8,438 6,750 5,063 3,375 1,688 $41,920.63 $7,192.97 7.19%

Annual cost 26,250 24,563 22,875 21,188 19,500 23,438 21,750 20,063 18,375 16,688 $129,340.66 $22,192.97 22.19%

Alternative approach: Money borrowed from Lender -balloon payment at the end. Loan requires 11.25% return.

1 2 3 4 5 6 7 8 9 10 NPV Levelized ACFGrossCapital 100,000 100,000 100,000 100,000 100,000 150,000 150,000 150,000 150,000 150,000 DeprNet Capital 100,000 100,000 100,000 100,000 100,000 150,000 150,000 150,000 150,000 150,000 COM 11,250 11,250 11,250 11,250 11,250 16,875 16,875 16,875 16,875 16,875 $77,688.20 $13,330.16 13.33%Capital Repay 0 0 0 0 0 0 0 0 0 150000 $51,652.47 $8,862.81 8.86%

Annual cost 11,250 11,250 11,250 11,250 11,250 16,875 16,875 16,875 16,875 166,875 $129,340.66 $22,192.97 22.19%

Year 1

Year 1

Approach used in CQBAT: Upfront capital asset that requires 11.25% return. Value of asset degrades over time (as represented by Depr). Asset degradation is captured back in price of service and paid back to Lendor (much like a car loan)

Annualization• CQBAT Costs (Summary)

• Depr = Investment X Levelized Depreciation Factor• COM = Investment X Levelized COM Factor• IncomeTax = Investment X Levelized Income Tax Factor• Plant Specific Expenses = Investment X Plt Spec Factor• Non‐Plant Specific Expenses = Investment X Non‐Plt Spec Factor• Customer Operations Expenses = Expense/Customer X # Customers

• Corporate Operations = Investment X Corporate Ops Factor

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Greenfield/Brownfield• Options in CQBAT:

• Current User Toggle approach:• Greenfield = “No”• Tied to CAPEX inputs that indicate whether a Capex item is Greenfield, Brownfield, All• The current Greenfield toggle simply excludes the capex items listed as “Greenfield”

• For example, copper distribution is listed as Greenfield, as such it will be left out• Issues:

• While Greenfield items are removed, it also removes any associated• Operational costs• Replacement capital

• Current alternative approach: Modified ACF inputs• Under this approach, Greenfield =“Yes”

• Captures the capital and operational cost• ACF table sets DEPR, COM, and TAX to 0 for those items that are typically “Greenfield”• Issues:

• Excludes all capex cost (including replacement) if the ACF values are set to 0• Some categories may be mixed (Greenfield and Brownfield): e.g., Conduit

• If needed, alternative approaches can be developed

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Greenfield/BrownfieldThe following Support Q/A may help clarify some questions about the Greenfield/Brownfield approachQ: When the model is set to brownfield FTTD, can you confirm whether it does the following:

A. Models the costs for the addition of DSLAMs where DSLAMs are not present within 12,000 feet of locations not served by an unsubsidized competitorR: Correct: DSLAMS are added as needed to support the broadband requirements of the model. The investment for these new DSLAMs is captured in the brownfield view.B. Models the costs for the building of fiber to these new DSLAMR: The fiber is sized to support these new DSLAMs; only the portion of the fiber which supports the unserved area is captured in the brownfield investment. The structure (poles and conduit) are assumed to exist so their investment isn’t captured.C. Models the costs for the building of fiber to COs where fiber is currently assumed not to existR: The fiber investment which supports the new DSLAMs is retained D. Models the costs of additional switches, routers and ADMs necessary to provision increased bandwidth demandR: The investment to grow routers (there are no switches in the model) placed in unserved areas is included.

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Greenfield/Brownfield…continuedQ: If there are other significant costs that brownfield FTTD models (other than conditioning and CPE), can you please address them?

R: The model doesn’t really model brownfield differently than greenfield. What it does is segregate investment differently. In the greenfield view all the investment calculated by the network is included. In the brownfield view, all of the investment is not reported out.

Q: When the model is set to brownfield, does it only affect the CapEx input sheet? If it affects other input sets, please specify.. Specifically, does it affect operating expenses?

R: Again the brownfield/greenfield isn’t impacting inputs. It is segregating investment. When the opex inputs were calculated by the coalition, they were calculated on a greenfield bases.

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Q/A

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CQBATPLATFORMOVERVIEW

Capturing Company and Geographic Specific attributesClassifying Service AreasDemand DevelopmentNetwork CapabilitiesExisting Broadband CoverageData SourcesThe Guts

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HighLevelFlowofCQBAT

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Network Topologies

UserInputs Annualization

Opex

CapitalExpenditure

CurrentCoverage

Telco and Cable

CAF2Results

Support Toggles

ResultsBy

Census Block

Service Locations

91

CapturingCompanyandGeographicDifferences• CQBAT models the cost of an efficient provider, but recognizes the specifics of an operating area (and even a Census Block)• Plant mix captures variation in

• State• Density• Distribution, feeder, interoffice

• Company size impacts• Operation cost • Capex purchasing power

• Terrain and density impacts• Construction and plant specific costs

• Regional Cost Adjustment• Applied to capex to capture regional cost differences in construction costs – both

material and labor• Impacts those operational costs that are a factor of capex

• Sales Tax• Captures state by state differences

• Loop design• Captures the specifics of the network build all the way down to a customer

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MappingofServiceAreas• TeleAtlas provides a mapping from CLLI (service area) to SAC

• Provides initial mapping• Using files of FCC and prior efforts

• SAC mapped to OCN• Coalition reviewed their CLLI to SAC to OCN mapping, updates made

• Within CQBAT• Internal TelcoMaster table controls

• Mapping of CLLI to OCN/SAC• Mapping of CLLI to ShortName• Mapping of RoR/PC

• OCNCoSize table controls• Company size

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Classifying ServiceAreas• Determining the Size and Type for each company

• USAC reports were used as the basis to initially assign and map companies• HC05, HC12, HC9 Provides:

• Reported Line Counts• Rural/Non‐rural flag• PriceCap / RoR basis

• Company ownership based in part on initial file from FCC that was tuned for CAF1 regression model and CQBAT

• ABC coalition reviewed and provided updates to OCN/SAC to company mappings• Company Size Categories (chosen in part to distribute Small companies into

equal groups)• XXSmall: 0 – 1000 lines• Xsmall: 1000 – 4000 lines• Small: 4000 – 100,000 lines• Medium: 100,000 – 1M lines• Large: > 1M lines

• Company size drives• Opex, Capex differentiation

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TelcoMaster

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SAKey ServiceArea State OCN CompanyName LATA DomSwitch SAArea ShortName SAC StudyAreaName SourceKey SourceMetaKey Rural Type RORorPC1 AAPKOKXA OK 1980 CHICKASAW TELEPHONE CO. 536 AAPKOKXADS0 105665565.6 SML 431980 CHICKASAW TEL CO 1 1 R C RoR2 ABBGNCXA NC 502 STAR TELEPHONE MEMBERSHIP CORP. 949 ABBGNCXA648 402813280.5 SML 230502 STAR MEMBERSHIP CORP 2 1 R C RoR3 ABDLFLXA FL 328 VERIZON FLORIDA INC. 952 ABDLFLXA96H 79761673.3 VZN 210328 VERIZON FLORIDA 3 1 N C PC4 ABDLWIXA WI 859 CENTRAL STATE TELEPHONE CO. 350 ABDLWIXARS0 254909411.2 TDS 330859 CENTRAL STATE TEL CO 4 1 R C RoR5 ABHGMIMN MI 9323 AMERITECH MICHIGAN 340 ABHGMIMNDS0 70193483.78 ATT 315090 MICHIGAN BELL TEL CO 5 1 N C PC8 ABLNKSCD KS 9533 SOUTHWESTERN BELL 534 ABLNKSCDDS0 170515903.7 ATT 415214 SOUTHWESTERN BELL‐KS 8 1 N C PC9 ABLNTXOR TX 9533 SOUTHWESTERN BELL 550 ABLNTXORCG0 281105925.8 ATT 445216 SOUTHWESTERN BELL‐TX 9 1 N C PC10 ABLNTXOW TX 9533 SOUTHWESTERN BELL 550 ABLNTXOWDS0 552705465.9 ATT 445216 SOUTHWESTERN BELL‐TX 10 1 N C PC11 ABNGILXD IL 1183 CITIZENS TELECOM CO ILLINOIS‐FRONTIER CITIZENS ‐IL 977 ABNGILXDRS0 201675516.9 Fron 341183 CITIZENS‐FRONTIER‐IL 11 1 R C PC12 ABNGVAXA VA 4511 UNITED TELEPHONE ‐ SOUTHEAST ‐ VA 956 ABNGVAXADS0 496631098.9 Cent 190567 UNITED INTER‐MT‐VA 12 1 R C PC13 ABRCNDXA ND 1631 RED RIVER RURAL TEL ASSN ‐ ND 636 ABRCNDXADS1 283072356.9 SML 381631 RED RIVER RURAL TEL 13 1 R A RoR14 ABRDIDXC ID 4427 CITIZENS TELECOM IDAHO‐FRONTIER COMM OF IDAHO 652 ABRDIDXCDS0 367287858.7 Fron 474427 CITIZENS‐FRONTIER‐ID 14 1 R C PC15 ABRDMDAB MD 9212 VERIZON MARYLAND, INC. 238 ABRDMDABDS0 193624914.5 VZN 185030 VERIZON MARYLAND INC 15 1 N C PC16 ABRDMSES MS 9419 BELLSOUTH TELECOMM INC DBA SOUTH CENTRAL BELL TEL 482 ABRDMSESRS9 839910644.2 ATT 285184 SO CENTRAL BELL‐MS 16 1 N C PC17 ABRDNCXA NC 476 WINDSTREAM NORTH CAROLINA, INC. 949 ABRDNCXADS0 64259134.59 Wind 230476 WINDSTREAM NC 17 1 R F PC18 ABRDOH79 OH 9321 AMERITECH OHIO 328 ABRDOH79RS1 19394818.04 ATT 305150 OHIO BELL TEL CO 18 1 N C PC19 ABRDSDCO SD 9631 QWEST CORPORATION 640 ABRDSDCODS0 1493003227 Cent 395145 QWEST CORP‐SD 19 1 N C PC21 ABRMWIXA WI 925 BAYLAND TELEPHONE, INC. 350 ABRMWIXADS0 225191239.8 SML 330925 BAYLAND TEL CO 21 1 R A RoR22 ABRNTXXA TX 1163 VALOR TELECOMM TX, LP‐TX #1 DBA WINDSTREAM COMM SW 544 ABRNTXXADS0 66322125.95 Wind 441163 WINDSTREAM SW‐TX#1 22 1 R C PC23 ABRYTXGI TX 9533 SOUTHWESTERN BELL 552 ABRYTXGIRS0 190791038.1 ATT 445216 SOUTHWESTERN BELL‐TX 23 1 N C PC25 ABSRMTXC MT 2250 PROJECT TELEPHONE CO., INC. 650 ABSRMTXCDS0 1586091755 SML 482250 PROJECT TEL CO 25 1 R C RoR26 ABSRNDXA ND 1601 ABSARAKA COOPERATIVE TELEPHONE CO. 636 ABSRNDXADS0 54640954.71 SML 381601 ABSARAKA COOP TEL CO 26 1 R A RoR27 ABVLALXA AL 9788 CENTURYTEL TEL OF ALABAMA, LLC (SOUTHERN) 478 ABVLALXADS0 1013610557 Cent 259788 CENTURYTEL‐AL‐SOUTH 27 1 N C PC29 ABVLKSXA KS 1810 UNITED TELEPHONE OF EASTERN KANSAS 532 ABVLKSXARS0 379154246.6 Cent 411317 UNITED OF EASTERN KS 29 1 R C PC31 ABVLPAES PA 9208 VERIZON PENNSYLVANIA, INC. 232 ABVLPAESRS1 139893321.3 VZN 175000 VERIZON PENNSYLVANIA 31 1 N C PC32 ABVLSCXA SC 4335 VERIZON SOUTH INC.‐SC 430 ABVLSCXADS0 38681581.72 Fron 240479 FRONTIER CAROLINAS ‐ SC 32 1 N C PC33 ACCYTXXA TX 332 BRAZOS TELECOMMUNICATIONS, INC. 548 ACCYTXXARS0 325883460.5 SML 442041 BRAZOS TEL COOP INC 33 1 R C RoR34 ACDMSDXA SD 1670 MIDSTATE COMMUNICATIONS, INC. 640 ACDMSDXADS1 1073977995 SML 391670 MIDSTATE COMM., INC. 34 1 R C RoR35 ACFFTXXA TX 2143 SOUTH PLAINS TELEPHONE COOPERATIVE, INC. 544 ACFFTXXADS0 296908509.2 SML 442143 SOUTH PLAINS TEL 35 1 R C RoR36 ACHLOKXA OK 1979 CHEROKEE TELEPHONE CO. 536 ACHLOKXARS1 65732090.24 SML 431979 CHEROKEE TEL CO 36 1 R C RoR37 ACHLTNMT TN 9419 BELLSOUTH TELECOMM INC DBA SOUTH CENTRAL BELL TEL 470 ACHLTNMTRS0 268781729.9 ATT 295185 SO. CENTRAL BELL ‐TN 37 1 N C PC38 ACKLIACO IA 9631 QWEST CORPORATION 632 ACKLIACORS8 304493371.3 Cent 355141 QWEST CORP‐IA 38 1 N C PC39 ACKRMSXA MS 452 DELTA TELEPHONE CO., INC. 482 ACKRMSXADS3 287868396.5 SML 280452 DELTA TEL CO 39 1 R C RoR40 ACLKILXA IL 1036 VERIZON NORTH INC.‐IL (CONTEL) 360 ACLKILXARS0 41706024.14 Fron 341036 FRONTIER N ‐ IL 40 1 N C PC41 ACMEMIMN MI 9323 AMERITECH MICHIGAN 348 ACMEMIMNDS0 44464942.5 ATT 315090 MICHIGAN BELL TEL CO 41 1 N C PC42 ACMENCMA NC 9417 BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL 428 ACMENCMA65F 745738772.9 ATT 235193 SOUTHERN BELL‐NC 42 1 N C PC43 ACMEWAXA WA 4423 VERIZON NORTHWEST INC.‐WA (CONTEL) 674 ACMEWAXARS1 248879014 Fron 522449 FRONTIER NW ‐ WA 43 1 N C PC44 ACSHMAPL MA 9102 VERIZON NEW ENGLAND INC. 128 ACSHMAPLDS1 93691243.37 VZN 115112 VERIZON MASS. 44 1 N C PC46 ACTNIN01 IN 9325 AMERITECH INDIANA 336 ACTNIN01DS0 123064183 ATT 325080 INDIANA BELL TEL CO 46 1 N C PC47 ACTNMAMA MA 9102 VERIZON NEW ENGLAND INC. 128 ACTNMAMADS1 76872647.66 VZN 115112 VERIZON MASS. 47 1 N C PC48 ACTNTXXA TX 2153 TEXAS WINDSTREAM, INC. 552 ACTNTXXADS0 158752283.9 Wind 442153 TEXAS WINDSTREAM 48 1 R F PC

OCNCoSize

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COSize ILECHoldingCompanyName OCN ShortName SAC State USACStudyAreaName ALternateStudyAreaNameS Oxford Telephone and Telegraph 3314 SML 100002 ME OXFORD WEST TEL CO OXFORD WEST TELEPHONE COMPANYS Lincolnville Telecom Company 0003 SML 100003 ME Lincolnville Telecom Company Lincolnville Telecom CompanyS TIDEWATER TELECOM, INC. 3311 SML 100003 ME TIDEWATER TELECOM, INC. TIDEWATER TELECOM, INC.M FairPoint Communications, Inc. 0004 Fair 100004 ME CHINA TEL CO. CHINA TELEPHONE CO.M Telephone and Data Systems, Inc. 0005 TDS 100005 ME COBBOSSEECONTEE TEL COBBOSSEECONTEE TELEPHONE COMPANYM Telephone and Data Systems, Inc. 0007 TDS 100007 ME ISLAND TEL CO ISLAND TELEPHONE CO.M Telephone and Data Systems, Inc. 0010 TDS 100010 ME HAMPDEN TEL CO HAMPDEN TELEPHONE CO.M Telephone and Data Systems, Inc. 0011 TDS 100011 ME HARTLAND & ST ALBANS HARTLAND & ST. ALBANS TELEPHONE CO.M FairPoint Communications, Inc. 0015 Fair 100015 ME COMMUNITY SERVICE COMMUNITY SERVICE TELEPHONE CO.S Oxford Telephone and Telegraph 0019 SML 100019 ME OXFORD COUNTY TEL OXFORD COUNTY TELEPHONE & TELEGRAPH CO.S Otelco Inc. 0020 SML 100020 ME PINE TREE TEL & TEL PINE TREE TELEPHONE & TELEGRAPH CO.S Otelco Inc. 0022 SML 100022 ME SACO RIVER TEL & TEL SACO RIVER TELEPHONE & TELEGRAPH CO.M Telephone and Data Systems, Inc. 0024 TDS 100024 ME SOMERSET TEL CO SOMERSET TELEPHONE CO.M FairPoint Communications, Inc. 0025 Fair 100025 ME STANDISH TEL CO STANDISH TELEPHONE CO.Y Union River Telephone Company 0027 SML 100027 ME UNION RIVER TEL CO UNION RIVER TELEPHONE CO.S UniTek, Inc. 0029 SML 100029 ME UNITY TEL CO., INC. UNITY TELEPHONE CO., INC.M Telephone and Data Systems, Inc. 0031 TDS 100031 ME WARREN TEL CO WARREN TELEPHONE CO.M Telephone and Data Systems, Inc. 0034 TDS 100034 ME WEST PENOBSCOT TEL WEST PENOBSCOT TELEPHONE & TELEGRAPH CO.

ChangesinServiceAreaMapping• Summary of TelcoMaster Updates Since Filing

• February 2012 Miscellaneous corrections• Changes were applied January 2012 prior to the February Public runs• These changes revised the company (Short Name) that some Service Areas report under

and also changed some to Rate of Return type of carriers• Changed all Service Areas for SAC 100015 Community Service in ME from Price Cap to Rate of

Return• Changed all Service Areas for SAC 210291 GTC , Inc. in FL from Shortname ‘SML’ to ‘Fair’, Fairpoint• Changed all Service Areas for SAC 371536 Curtis Tel Co from ShortName ‘Cons’ to ‘SML’ in NE• Changed all Service Areas for SAC 381131 Citizens‐Frontier ND from Price Cap to Rate of Return• Changed all Service Areas for SAC 431981 Chouteau Tel Co in OK from ShortName ‘SML’ to ‘Fair’,

Fairpoint• Changed all Service Areas for SAC 462187 The El Paso Cnty Tel in CO from ShortName ‘SML’ to

‘Cent’ Century Link• Changed all Service Areas for SAC 613027 in AK from ShortName ‘ATT’ to ‘SML’ and updated to Rate

Of Return. This was previously AT&T Alascom• Created input table CQAOCNCoSize_V5 which was made available for use

• May 2012 changes to Price Cap and change of ownership• Changed definition from Rate of Return to Price Cap for several Fairpoint, Windstream

and Consolidated SACs• 3 West Virginia Service Areas changed ownership to Frontier• 1 New Mexico Service Area changed ownership to Qwest and Price Cap

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CQBATDemand/Services• For CQBAT, the following overviews the Demand/Service creation:

• For residential data, Census Block‐based estimates were used • The census based, residential data were randomly placed along the roads in a

Census Block, to arrive at an unbiased estimate of residential locations to drive the network build

• For business data, a multi‐step process was used:• A count of business locations by Census Block was obtained from Geolytics• To estimate the type and size of the firms, business data from the Economic Census

(2007) were utilized which is at ZIP code level• ZIP Code boundaries were overlaid on top of Census Block boundaries to create an

association between Census Blocks and ZIP Codes• The Economic Census business data were allocated into Census Blocks based on

the prevalence of ZIP data points• Within each Census Block, the Economic Census count of firms was then compared

to the Baseline count of business firms ‐‐ difference assumed to be Single Office or Home Office (“SoHo”) business locations

• Once all the firms’ locations in Census Block were classified by type and size, the firm points were randomly assigned to eligible road segments within the blocks

• As a final step, wireless towers were added to the business demand point data set• The services assigned to residential and business customers follow on the

next slide

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CQBATDemand/Services

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Res Based on Census HH counts in CBsDSL #Customer #

Basic Bus Based on GeoResults Firm counts in CBs ‐ Not accounted for by Economic Census Counts, Anchors or Government dataDSL BCustomer {

Economic Census Based on Economic Census data ‐ sample data shownZip NAICS Est N1_4 N5_9 N10_19 N20_49 N50_99 N100_249 N250_499 N500_999 N1000

501 ‐‐‐‐‐‐ 3 1 1 0 1 0 0 0 0 0501 72‐‐‐‐ 1 0 1 0 0 0 0 0 0 0501 722212 1 0 1 0 0 0 0 0 0 0501 81‐‐‐‐ 2 1 0 0 1 0 0 0 0 0501 813110 2 1 0 0 1 0 0 0 0 01001 ‐‐‐‐‐‐ 477 214 88 78 53 23 18 2 0 11001 22‐‐‐‐ 3 2 0 0 1 0 0 0 0 01001 221119 1 1 0 0 0 0 0 0 0 01001 221310 1 1 0 0 0 0 0 0 0 01001 221320 1 0 0 0 1 0 0 0 0 01001 23‐‐‐‐ 60 36 12 6 5 0 1 0 0 01001 236116 1 1 0 0 0 0 0 0 0 01001 236117 1 0 1 0 0 0 0 0 0 0

Left(NAICS,2) >=50DSL B 1 1NSW NFO F 1 1 1 2 2 4 4Customer { 1

Left(NAICS,2) <50DSL B 1 1 1 1NSW N 1 2FO F 1 2 2 4 4Customer { 1

Government Locatio…portions captured in Anchor data

Towers …tbdFO WCustomer {

Anchor Institutions SBDDFO 1,2,3,4,5,6,7 Code to match typeCustomer {

Counts of Services

Counts of Services

Service Creation

Sample Econ

omic Cen

sus D

ata

NetworkCapabilities• Extent of Network

• Runs from customer demarcation point (e.g., NID) to Router on the “Cloud”

• Design of network• IP based network• Focus on cost of data "Pipe“

• No Video gear (including STB) installed• No Voice Gateway installed

• Voice, Data, Video are considered services that ride the bits on the pipe

• Network should be built to pass and ready to serve all locations (whether working or not)

• Consistent with many state level POLR/COLR requirements

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NetworkOverview

Property of CostQuest Associates, Inc. Any use without persmission is strictly prohibited

IP CloudRouter Router

Router

Router

Router

Wire Center

Wire Center

Wire Center

Wire Center

Wire Center

Wire CenterWire CenterWire Center

Router Router

Router

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101

EXISTINGBROADBANDCOVERAGE

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BroadbandCoverageDataLoad

• Broadband coverage was derived from National Broadband Map

• Data Downloaded March 2011• First Public National Map Release (Feb 2011)• NBM Round 2 (Fall 2010 Ground Date)• Coverage data downloaded as CSV• Census 2000 format

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BroadbandCoverageProcessing

• Coverage was segregated into three technology groups • A technology group is defined by a Transtech (Transmission Technology)

• “Telco”=NTIA xDSL, SDSL, OtherCU, Optical Carrier• (Transtech 10,20,30,50)

• “Cable”=NTIA DOCSIS 3.0, DOCSIS Other• (Transtech 40,41)

• “Wireless”=NTIA Mobile Wirless, Fixed Wireless• (Transtech 70,71,80)

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BroadbandCoverageSpeed“Winner”

• Within these technology groups (telco, cable, wireless) top speed category was calculated based upon the top speed in each technology category• Example: If there are multiple “Cable” providers in a block, the fastest speed will be attributed to that block for that technology group

• This categorization was made block by block without regard to serving area, operating company or neighboring blocks

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BroadbandCoverageSpeedTier

• National Broadband Map data is reported in upstream and downstream speed tiers • Tier 3=.768 to 1.5 Mbps, Tier 4=1.5 to 3.0 Mbps

• The block speed value was assigned based upon the bottom value in the NTIA downstream tier• Tier 3 assigned .768 Mbps• Tier 4 assigned 1.5 Mbps

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DataProcessingExceptions• Most of the data source issues we found have been corrected in supplemental releases

1. We only included blocks that had a valid Transtech2. If the speed categories were below FCC threshold

(MaxAdDown < Category 3) block ignored3. If there were no speed categories on the block, speed was

assumed to be .768 Mbps

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SBDDRound2CableCoverage

SBDD Cable in Yellow

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BroadbandCoverageSupplementation

• In this early release of NBM data, there was concerned that the cable coverage footprint may be too small.

• Carriers analyzed a number of third party data sources versus the existing NBM coverage• Difficult to overcome the licensing issues in third party data• Indeterminate what the ‘most accurate’ source was

• Selected Warren Media as alternate source• NTIA/Warren Media Blend is a combina on of cable coverage data from both the National Broadband Map and Warren Media

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WarrenMediaCoverage

SBDD Cable in YellowWarren Media Green

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BroadbandCoverageSupplementation

• The blended Cable coverage is accomplished by augmenting the NBM Cable data with Warren based Census Designated Places• In Warren Media covered areas

• Remove any Warren CDP that contains SBDD coverage• Remove any Warren CDP that have linear density < 35 service locations per road mile

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WarrenMediaBlend

SBDD Cable in YellowWarren Served CDP in Pink

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DATASOURCES

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CQBATCurrentDataSourcesData Category Model Variables Data Source

Wireline Coverage Capex Opex

Census Boundaries Full census block; full census block group; full census tract; full census county; census state

2009 TIGER x x x

Wire center boundaries Wire center code; wire center area TeleAtlas 2010 x x

Geographic characteristics Land area, total road length; x and y coordinates by fragment.

Tiger Roads 2009; x X

Terrain Terrain Characteristics USGS‐Statsgo x xPopulation size Population by block Population density by block and

road length.2010 Geolytics and 2000 Census

x x

Housing units Occupies housing units, total housing units, total households by block

2010 Geolytics x x

Provider size and organizational structure

Corporate ownership, size of parent company, number of wire centers operated by carrier.

Coalition Members x x x

Company opex financial data

A wide array of company specific financial information (and underlying business volumes) from public and subscription service sources. Data centers on operating expense by category (e.g., maintenance, sales, interconnection, sales and marketing, G&A, bad debt, taxes, etc.)

See Appx. 4 for a comprehensive list of opex data sources

x

High Capacity locations High Capacity locations will be used to represent high demand business points and will be used to improve Business location points for sizing the network.

Economic Census http://www.census.gov/econ/cbp/

x x

Wireless tower location Wireless tower locations will be used to represent locations requiring fiber service and will be used to supplement Business and Residential customer points for sizing the network.

To be determined x x

Wireline carrier service Telco broadband speed for wireline area coverage within a block

February 2011 National State Broadband Data NBM 6/30 deliverable download 3/22/11

Cable carrier service Cable broadband speed for cable area coverage within a block

NBM 6/30 deliverable download 3/22/11

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THEGUTS

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CQBATSchematic

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ProcessingSteps• Step1 Telco Create Sol Set• Step 2 Initialize Solution Set • Step 2b Update CTDensity• Step 3a Feeder• Step 3b Delete From SS• Step 4a Determine Take Rate• Step 4b Determine Take Rate• Step 5 Determine bandwidth• Step 6 Determine ARPU• Step 7 Determine Node2• Step 8a Delete SysCapex• Step8b Create SysCapex• Step8c Adjust MM• Step8d Update SysCapex.• Step 9a ‐ Index before 9• ** Step 9b Start State Loop 9b• Step 9c Start Loop Load Capex Dist• Setp 9d Delete TEMPSS_CapexDist

Table• Step 9e Insert TEMPSS_CapexDist• Step9f Update SS with CapexDist• Step 9g End of State Loop 9• ** Step 9h End of State Loop 9• Step 9i Drop Index After 9• Step 10a ‐Create Index before 10• ** Step 10b Start State Loop 10

• Step 10c Delete SysCapex_Fdr• Step 10d Delete from

TEMPSysCapex_Fdr• Step 10e Insert

TEMPSysCapex_Fdr• Step 10f Insert SysCapexFdr• Step 10g Load Capex Fdr• Step 10h Truncate before

TEMPSysCapex_MM• Step 10i Truncate before

SysCapexMM• Step 10j Insert TEMPSysCapexMM• Step10k Insert SysCapex MM• Step10l Update CapexMM• ** Step 10m End State Loop• Step 11a Delete SysOpex• Step 11b Drop Index• Step 11c Create SysOpex• Step 12a Create Index Step 12• ** Step 12b Start State Loop 12• Step 12c Load Opex• Step12d Delete TEMPSS_Opex• Step12e Insert TEMPSS_Opex• Step12f Update SS Opex• Step 12g End SQL Loop• ** Step 12h End of State Loop 12

• Step 13 Total Investment• Step 14 Final Updates• Step 15 Version Logging• Step 16 ‐ Index SSMaster for

Reporting

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ProcessingSteps– inQuasi‐English• Create entries in Solution Set table

• Entries are driven by the Network Design Distribution table• A record is created for each CB/ServiceArea/Node2ID that meets the criteria• The record contains Census data, coverage data in terms of speed for Telco,

Wireless and Cable and Distribution information (Node 3 Structure and Density, Node3 Length) and Node4 working lines

• Processing continues to update various fields of the Solution Set as described in the following steps• Update Node 2 and Node 0 fields based on Feeder data per the Node2ID• Apply Residence Take Rate• Apply Business Take Rate• Apply CB Bandwidth• Apply Node2 Bandwidth

• Prepare intermediate table SYS CAPEX using the Capex user input combined with other user inputs• For each State and Network design type being used (FTTd or FTTp), the SYS

CAPEX includes Material Amounts, COM, Depreciation, Tax and Operating Expense by Density and Terrain

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ProcessingSteps– inQuasi‐English• Apply Capex Distribution

• Loop through each state, using the SYS CAPEX table update the Solution Set fields Deprecation, COM, Tax and Opex fields (such as NetworkOperationsPSOpex)

• Apply Capex Feeder• Loop through each state, update the Solution Set fields Deprecation, COM, Tax and Opex fields

• Apply middle mile adjustments to these same Solution Set fields• Create intermediate table SYS OPEX using the user input for Opex which varies by the CO Size and Density

• Apply Opex• Loop through each state, update the Solution Set fields Deprecation, COM, Tax and Opex fields

• Calculate Total Investment and Total Cost

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SolutionSets• Output structure

• What is the solution set?• A Solution Set is a collection of output data processed by the model based on user defined settings and Input Collections

• Specifically, Solution Set output is a function of the user specifying the States to be included in the scenario, the toggle settings that best fit user requirements and the underlying Input Collection consistent with user needs

• The Solution Set is developed based upon two types of data feeds:

• The first feed is the Input Collection• The Input Collection represents a specifically formatted series of OpenXML

(.xlsx) files• The second feed to the Solution Set is a network topology which captures

the selection of FTTd or FTTp

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SolutionSetFields(page1)

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Column Datatype DescriptionSSKey Int ID of Record in Solution SetCB VarChar (16) Census Block IDServiceArea VarChar (15) Service area IDTech1 VarChar (10) Provider TypeTech2 VarChar (10) TechnologyTech3 VarChar (10) ArchitectureTech4 VarChar (15) Distance to major node (DSLAM, Fiber node, Splitter, Tower) or Type of Wireless RunState Char (2) StateZip3 VarChar (3) 3 Digit Zip CodeHU Float Housing UnitsPop Float PopulationBusinessEmployees Float Number of Business employees

SSRecordsPerCB Float This field would be used in some reporting by CB. It is a ratio of the Node4WorkingCust to RES and BUS census block data.

AreaSqMi Float Area: (mi^2), from CBMaster (converted)CoSize Char (1) Company Size (S, M, L, Y, Z)SASize VarChar (2) FIELD IS NOT USEDTelcoBBSpeed Float Speed for Telco delivered BroadbandCableBBSpeed Float Speed for Cable delivered BroadbandWirelessBBSpeed Float Speed for Wireless delivered BroadbandTelcoBBServed Bit Indication if telco broadband exceeds threshholdCableBBServed Bit Indication if wireless broadband exceeds threshholdWirelessBBServed Bit Indication if cable broadband exceeds threshholdTowerCount Float FIELD IS NOT USEDGorB VarChar (1) Greenfield or Brownfield build

Competitors SmallInt

Represents number of competitors for costing model run. This value may be entered by the user, in which case all records in the Solution Set will have the same value or it may be specific to the solution set record,representing the actual number of provider types serving this CB (example, 0, 1, or 2 , 2 meaning both wireless and cable serve the area)


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Column Datatype DescriptionNode4WorkingCust Float Number of potential customers in CB,populated based on CostPro DistributionNode4WorkingCustBus Float Potential Business customers in CB, populated based on CostPro DistributionNode4WorkingCustRes Float Potential Residential customers in CB,populated based on CostPro DistributionNode4Cable Float Distance: (ft), from DistributionNode3WorkingLines Float Number of potential customers at Node3Node3Length Float Distance: (ft), from DistributionNode3Cable Float Length of 25 pair capacity (in feet) triggered by CBNode3CableSpliceSU Float Portion of splice set ups (count) triggered by CBNode3CableSplice Float Portion of splices (count) triggered by CBNode3StructureSharedHard Float Amount of Node3 structure that is shared with Node2 routesNode3StructureSharedMedium Float Amount of Node3 structure that is shared with Node2 routesNode3StructureSharedNormal Float Amount of Node3 structure that is shared with Node2 routesNode3StructureNormal Float Portion of structure in normal terrain triggered by CBNode3StructureMedium Float Portion of structure in medium terrain triggered by CBNode3StructureHard Float Portion of structure in hard terrain triggered by CBNode3EquipQty Float Number of Node3/Pedastals in CBNode3Density Char (1) Density of distribution areaNode2ID VarChar (15) ID of serving Node2Node1ID VarChar (15) ID of serving Node1Node0ID VarChar (15) ID of serving Node0CBRoadLength Float Distance: (ft), from DistributionCBHWCRRoadLength Float Distance: (ft), from DistributionNode2Length Float Distance: (ft), from FeederNode2WorkingLines Float Number of customers passed by Node2Node2TowerExists Bit Does tower exist in Node2 areaNode22gExists Float Percentage of 2G in Node2 areaNode2Terrain Char (1) Average terrain in Node2 areaNode2Density Char (1) Average density in Node2 areaNode0WorkingLines Float Number of total customers in service areaNode0Node2Counts Float Number of Node2 locations in service area


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Column Datatype DescriptionCTDensity Float Node4WorkingCustRes density (per Area Sq Mi) at a Census TrackVoiceTake Float Estimated Voice take in CBDataLowTake Float Estimated DataLow take in CBDataHighTake Float Estimated DataHigh take in CBVideoLowTake Float Estimated VidoeLow take in CBVideoHighTake Float Estimated VideoHigh take in CBBundleLowTake Float Estimated BundleLow take in CBBundleHighTake Float Estimated BundleHigh take in CBDataTake Float Estimated total Data take in CBVideoTake Float Estimated total Video take in CBTotalVoiceTake Float Estimated total voice take in CBDataLowRevenue Float Estimated DataLow Revenue in CBDataHighRevenue Float Estimated DataHigh Revenue in CBVideoLowRevenue Float Estimated VideoLow Revenue in CBVideoHighRevenue Float Estimated VideoHigh Revenue in CBVoiceRevenue Float Estimated Voice Revenue in CBBundleLowRevenue Float Estimated BundleLow Revenue in CBBundleHighRevenue Float Estimated BundleHigh Revenue in CBAverageAnnualGrowth Float Based on Gompertz curve, this is the average annual growth in demandAverageAnnualGrowthVideo Float Based on Gompertz curve, this is the average annual growth in video demandCBBandwidth Float Estimated bandwidth in busy hour for CBDataRevenue Float Estimated total Data Revenue in CBTotalRevenue Float Estimated Total Revenue in CBTotalVoiceRevenue Float Estimated total Voice Revenue in CBVideoRevenue Float Estimated total Vidoe Revenue in CBNode2Take Float Total take at the serving Node2Node2Bandwidth Float Total bandwidth in busy hour at serving Node2


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Column Datatype DescriptionNode0CloudEletronicsInvS Float Investment for Node0 cloud electronics (driven by subscribers)Node0ElectronicsInv2 Float Node0Routers - Investment for Node0 termination electronics (driven by node 2 counts)Node0ElectronicsInvB Float Investment for Node0 termination electronics (driven by bandwidth)Node0ElectronicsInvC Float Node0Regen - Investment for Node0 termination electronics (driven by customers)Node0VideoEletronicsInvC Float Investment for Node0 video termination electronics (driven by customers)Node0VideoEletronicsInvS Float Investment for Node0 video termination electronics (driven by subscribers)Node2AFStructureInv2 Float Node2PolesFDR - Investment for Node2 to Node0 Aerial Fiber Structure (Poles)Node2BFStructureInv2 Float Node2BuriedTrenchFDR - Investment for Node2 to Node0 Buried Fiber Structure (trench)

Node2CCableInv2 Float Node2FDIFDR - Investment for Node2 to Node0 copper cable, including termination gear (FDI)

Node2ElectronicsInv2 Float Node2DSLAMFixedFDR - Investment for Node2 electronics (typically driven by placement of node2: Represents DSLAM Frame for Wireline, Microwave for Wireless )

Node2ElectronicsInvB Float Investment for Node2 electronics (typically driven by bandwidth: Represents Radio for Wireless)

Node2ElectronicsInvS Float Node2DSLAMVariableFDR - Investment for Node2 electronics (typicall driven by subscribers or structure: DSLAM cards for wireline, and Tower/hut and fiber electronics for wireless)

Node2FCableInv2 Float Node2FiberAndSplitterFDR - Investment for Node2 to Node0 fiber cable, including termination gear (driven by node2 placement)

Node2FCableInvL Float Node2SplitterCardsFDR - Investment for Node2 to Node0 fiber cable, including termination gear (driven by locations)

Node2UFStructureInv2 Float Node2ConduitFDR - Investment for Node2 to Node0 Underground Fiber Structure (conduit systems)

Node3ACStructureInvL Float Node3PolesCUDIST - Investment for Node3 to Node2 Aerial Copper Structure (pole)Node3AFStructureInvL Float Node3PolesFODIST - Investment for Node3 to Node2 Aerial Fiber Structure (pole)

Node3BCStructureInvL Float Node3BuriedTrenchCUDIST - Investment for Node3 to Node2 Buried Copper Structure (trench)

Node3BFStructureInvL Float Node3BuriedTrenchFODIST - Investment for Node3 to Node2 Buried Fiber Structure (trench)


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Column Datatype DescriptionNode3CCableInvL Float Node3CopperAndPedastalAndFSTDIST - Investment for Node3 to Node2 Copper CableNode3FCableInvL Float Node3FiberDIST - Investment for Node3 to Node2 Fiber Cable

Node3UCStructureInvL Float Node3ConduitCUDIST - Investment for Node3 to Node2 Underground Copper Structure (conduit systems)

Node3UFStructureInvL Float Node3ConduitFODIST - Investment for Node3 to Node2 Underground Fiber Structure (conduit systems)

Node4CCableInvL Float Node4DropNIDAndONT - Investment in dropNode4CPEInvS Float Node4Modem - Investment in customer premise gearNode4CPEVideoInvS Float Investment in customer premise video gearNode0FcableInv0 Float Node0FiberIOF - Middle Mile Fiber cable investmentNode0AFStructureInv0 Float Node0PolesIOF - Middle Mile Aerial structureNode0BFStructureInv0 Float Node0BuriedTrenchIOF - Middle Mile Buried structureNode0UFStructureInv0 Float Node0ConduitIOF - Middle Mile Underground structureNode0ElectronicsInv0 Float Middle Mile electronicsNode0LandBuildingOther0 Float Node0LandBuilding - Investment for Node0 items not specific to the network.NetworkOperationsPSOpex Float Opex for Plant Specific Network OperationsNetworkOperationsNPSOpex Float Opex for Non Plant Specific Network OperationsCustomerOperationsMktOpex Float Opex for Customer Marketing OperationsServiceDeliveryOpex Float Opex for Customer Service Delivery OperationsGenAdminOpex Float Opex for General Administration OperationsBadDebtOpex Float Opex for Bad DebtCOGSOpex Float Opex for the Cost of Good Sold (e.g., Content)FranchiseFeeOpex Float Opex for Franchise FeeSpectrumOpex Float Opex for SpectrumDEPR Float Monthly Depreciation Expense related to InvestmentCOM Float Monthly Cost of Money related to InvestmentTAX Float Monthly Income Tax related to InvestmentTotalInvestment Float Total Incremental investment attributed to CBPopDensity Float Density: (People per mi^2), from CBMaster (converted)

TotalOpexCost Float

Computed field that adds NetworkOperationsPSOpex,NetworkOperationsNPSOpex,CustomerOperationsMktOpex,ServiceDeliveryOpex, GenAdminOpex,BadDebtOpex,COGSOpex,FranchiseFeeOpex and SpectrumOpex

CapitalCost Float Computed field that adds DEPR, COM and TAX

CQBATSchematic:Expanded

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CQBATSchematic:AnotherView

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INPUTREVIEW(ANDSOURCES)

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CoverageandNetworkTopologies

• The following have been developed externally and loaded into databases within CQBAT:• Current Broadband coverage pulled from NTIA’s National Broadband Map is captured in the CBMaster database

• The various network topologies as produced by CostQuest are captured in the Topology databases (one for each state)

• These topologies capture the size and type of plant required• These are then converted into investments (i.e., capex) applying costs for material and labor provided in user input tables

• Included in these databases are topology tables for• Distribution• Feeder• Middle Mile

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CQBATDist

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CB ServiceArea

Node4 Working Cust

Node4 Cable

Node4 Working CustRes

Node4 Working CustBus

Node3 Working Lines

Node3 Length

Node3 Cable

Node3 CableSpliceSU

Node3 CableSplice

Node3 Structure Normal

10010201001000 PRVLALMA 2 100.00 2 0 2 10,333 1,622.24 0.31 29.26 ‐ 10010201001000 PRVLALMA 1 362.00 1 0 4 2,474 343.35 0.04 3.10 ‐ 10010201001000 PRVLALMA 5 260.00 3 2 6 6,416 1,532.36 0.04 5.89 798.66 10010201001001 PRVLALMA 1 50.50 1 0 2 9,505 708.57 0.08 10.79 ‐ 10010201001001 PRVLALMA 11 2,457.33 11 0 19 8,150 6,211.74 0.99 56.79 1,714.57 10010201001002 PRVLALMA 48 6,297.92 44 4 81 11,743 36,713.44 9.52 899.86 6,375.92 10010201001002 PRVLALMA 53 8,495.69 48 5 74 9,529 28,664.68 4.17 379.70 6,738.29 10010201001003 PRVLALMA 18 1,627.64 15 3 30 9,308 12,122.24 2.66 184.25 1,995.07 10010201001004 PRVLALMA 9 970.17 8 1 20 8,863 6,118.35 1.11 82.34 935.87 10010201001005 PRVLALMA 7 786.08 7 0 20 11,464 5,416.78 1.45 137.22 712.02 10010201001005 PRVLALMA 21 3,340.33 20 1 27 9,534 14,503.78 3.88 220.01 3,496.54 10010201001006 PRVLALMA 14 1,368.14 12 2 24 10,834 10,098.71 2.10 239.83 844.52 10010201001007 PRVLALMA 48 2,578.02 47 1 65 10,544 32,100.42 8.56 797.88 728.15 10010201001008 PRVLALMA 4 200.00 4 0 8 9,961 2,788.27 0.89 71.18 ‐ 10010201001010 PRVLALMA 41 4,886.95 37 4 69 9,612 23,659.06 4.22 434.60 ‐ 10010201001011 PRVLALMA 78 8,871.76 74 4 124 10,614 42,596.84 7.61 824.27 2,544.04 10010201001012 PRVLALMA 10 1,144.20 10 0 21 7,442 4,862.88 1.05 99.53 511.53 10010201001013 PRVLALMA 6 959.00 5 1 17 6,074 1,994.48 0.14 29.34 ‐ 10010201001014 PRVLALMA 6 787.17 4 2 16 8,566 3,282.24 0.33 54.00 ‐ 10010201001015 PRVLALMA 3 150.50 3 0 4 9,505 2,011.65 0.24 32.36 ‐ 10010201001016 PRVLALMA 12 1,112.00 11 1 13 11,705 11,047.35 2.56 188.72 ‐ 10010201001017 PRVLALMA 1 50.00 1 0 2 11,705 1,348.62 0.32 18.80 ‐ 10010201001017 PRVLALMA 3 1,086.00 3 0 4 2,474 1,030.04 0.12 9.29 ‐ 10010201001018 PRVLALMA 16 1,764.67 15 1 26 11,445 12,692.37 4.41 349.15 2,134.96 10010201001019 PRVLALMA 11 1,183.67 10 1 22 10,861 7,962.78 1.67 191.21 998.48 10010201002000 PRVLALMA 21 1,869.11 20 1 35 6,156 7,028.63 2.02 137.80 ‐ 10010201002001 PRVLALMA 3 199.00 2 1 3 6,429 1,267.89 0.13 24.32 ‐ 10010201002002 PRVLALMA 21 2,516.50 18 3 34 6,639 7,254.24 0.56 94.02 ‐ 10010201002003 PRVLALMA 3 159.50 3 0 5 5,622 1,154.13 0.10 15.75 ‐ 10010201002004 PRVLALMA 10 2,022.92 10 0 25 9,055 4,697.60 0.91 114.30 ‐

Node3 Structure Medium

Node3 Structure Hard

Node3 Structure Shared Hard

Node3 Structure Shared Medium

Node3 Structure Shared Normal

Node3 EquipQty

Node3 Density Node2ID Node1ID Node0ID

‐ 420.98 420.98 ‐ ‐ 1.00 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 246.92 246.92 ‐ ‐ 0.25 R PRVLALMA5651 PRVLALMA5437 PRVLALMA5417‐ ‐ ‐ ‐ 23.92 4.50 R PRVLALMA5677 PRVLALMA5572 PRVLALMA5417‐ 141.23 141.23 ‐ ‐ 0.50 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ ‐ ‐ ‐ 111.39 4.00 R PRVLALMA5677 PRVLALMA5572 PRVLALMA5417‐ 1,300.90 368.81 ‐ ‐ 13.18 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ ‐ ‐ ‐ 676.20 16.39 R PRVLALMA5677 PRVLALMA5572 PRVLALMA5417‐ ‐ ‐ ‐ 212.65 4.69 R PRVLALMA5677 PRVLALMA5572 PRVLALMA5417‐ ‐ ‐ ‐ 121.51 1.33 R PRVLALMA5677 PRVLALMA5572 PRVLALMA5417‐ 309.71 147.75 ‐ ‐ 1.63 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ ‐ ‐ ‐ 212.65 5.92 R PRVLALMA5677 PRVLALMA5572 PRVLALMA5417‐ 619.42 295.50 ‐ ‐ 4.43 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 2,892.33 1,013.14 ‐ ‐ 7.40 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 429.62 84.43 ‐ ‐ 0.50 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 3,184.22 1,670.28 ‐ ‐ 10.07 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 3,258.49 907.77 ‐ ‐ 22.68 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 194.15 20.89 ‐ ‐ 1.90 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 233.73 12.53 ‐ ‐ 1.62 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 389.02 389.02 ‐ ‐ 1.17 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 359.18 359.18 ‐ ‐ 2.50 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 3,862.54 2,964.83 ‐ ‐ 5.50 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 747.99 563.28 ‐ ‐ 0.50 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 740.76 740.76 ‐ ‐ 0.75 R PRVLALMA5651 PRVLALMA5437 PRVLALMA5417‐ 323.59 34.81 ‐ ‐ 3.83 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 220.04 23.67 ‐ ‐ 3.67 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 1,327.67 255.43 ‐ ‐ 6.10 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 73.43 72.28 ‐ ‐ 2.00 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 1,080.17 435.67 ‐ ‐ 5.43 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 87.12 53.62 ‐ ‐ 1.50 S PRVLALMA5594 PRVLALMA5419 PRVLALMA5417‐ 850.35 19.10 ‐ ‐ 1.70 S PRVLALMA5595 PRVLALMA5420 PRVLALMA5417

CQBATFDR

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Node2 Cable

Node2 Length

Node2 Cable Splice

Node2 Cable SpliceSU

Node2 Structure Normal Rural

Node2 Structure Normal Suburban

Node2 Structure Normal Urban

Node2 Structure Medium Rural

Node2 Structure Medium Suburban

Node2StructureMediumUrban

Node2 Structure Hard Rural

Node2 Structure Hard Suburban

Node2 Structure Hard Urban

Node2 Structure Shared Hard Rural

Node2 Structure Shared Hard Suburban

Node2 Structure Shared Hard Urban

Node2 Structure Shared Medium Rural

ABVLALXA 1.19 16.00 ‐ ‐ 0.89 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 18,193.94 77,521.00 8.00 0.79 17,618.08 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 18,538.77 81,257.00 9.17 1.37 17,962.91 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 24,751.92 54,943.00 7.65 0.61 24,176.06 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 10,913.77 73,632.00 9.17 1.37 10,337.91 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 9,857.27 69,657.00 9.17 1.37 9,281.41 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 14,380.94 74,002.00 8.50 1.04 13,805.08 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 17,082.13 63,503.00 8.78 0.53 16,798.52 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 11,510.74 63,017.00 7.60 0.59 10,934.88 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 5,438.40 54,873.00 7.27 0.42 4,862.55 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 15,425.38 54,069.00 7.02 0.30 14,849.53 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 1,347.85 20,264.00 7.89 0.09 1,064.25 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 11,741.13 62,330.00 9.78 1.03 11,457.52 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ABVLALXA 18,340.13 68,929.00 9.78 1.03 10,572.52 ‐ ‐ ‐ ‐ ‐ 7,484.00 ‐ ‐ 3,438.96 ‐ ‐ ‐

Node2 Structure Shared Medium Suburban

Node2 Structure Shared Medium Urban

Node2 Structure Shared Normal Rural

Node2 Structure Shared Normal Suburban

Node2 Structure Shared Normal Urban

Node2 Working Lines

Node2 Tower Exists

Node2 2gExists

Node2 Road Length

Node2 HWCR Road Length

Node2 Microwave Hops

Node2 Terrain

Node2 Density

Node0 Road Length

Node0 HWCR Road Length

Node0 Working Lines

Node0 Node2 Counts Node2ID Node1ID Node0ID

‐ ‐ ‐ ‐ ‐ 1,278.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2232 ABVLALXA2114 ABVLALXA2113‐ ‐ 12,797.37 ‐ ‐ 46.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2233 ABVLALXA2229 ABVLALXA2113‐ ‐ 14,306.36 ‐ ‐ 16.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2234 ABVLALXA2227 ABVLALXA2113‐ ‐ 14,194.60 ‐ ‐ 7.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2235 ABVLALXA2211 ABVLALXA2113‐ ‐ 9,273.86 ‐ ‐ 63.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2236 ABVLALXA2226 ABVLALXA2113‐ ‐ 8,100.10 ‐ ‐ 26.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2237 ABVLALXA2228 ABVLALXA2113‐ ‐ 12,833.05 ‐ ‐ 41.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2238 ABVLALXA2224 ABVLALXA2113‐ ‐ 6,194.78 ‐ ‐ 29.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2239 ABVLALXA2138 ABVLALXA2113‐ ‐ 9,509.58 ‐ ‐ 18.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2240 ABVLALXA2230 ABVLALXA2113‐ ‐ 4,399.11 ‐ ‐ 45.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2241 ABVLALXA2220 ABVLALXA2113‐ ‐ 13,265.60 ‐ ‐ 9.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2242 ABVLALXA2218 ABVLALXA2113‐ ‐ 978.57 ‐ ‐ 22.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2243 ABVLALXA2119 ABVLALXA2113‐ ‐ 7,287.66 ‐ ‐ 42.00 ‐ ‐ ‐ ‐ ‐ N R 0 0 5,487.00 77.00 ABVLALXA2244 ABVLALXA2141 ABVLALXA2113‐ ‐ 6,410.66 ‐ ‐ 39.00 ‐ ‐ ‐ ‐ ‐ W R 0 0 5,487.00 77.00 ABVLALXA2245 ABVLALXA2140 ABVLALXA2113

ACF• ACF:

• Supplied by CostQuest based on input from the Coalition• This table captures the Annual Charge Factors that covert Investment into its monthly costs

• The current values loaded into CQBAT are produced by CostQuest’s CapCost model

• The basis of the model is the economic determination of the depreciation, cost of money and income taxes associated with various plant categories

• The calculation incorporates industry standard procedures, including: Equal Life Group methods, inclusion of future net salvage, Impact of deferred taxes, mid‐year conventions, etc.

• Currently assumes • 9% Cost of Money• Depreciation lives consistent with those prescribed by the FCC’s Wireline

Bureau latest general depreciation order• Used to convert Investment into monthly values of Depreciation (DEPR), Cost of Money (COM), and Income Taxes (TAX)

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ACF

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PlantAcct COM DEPR FedTAX StateTAX OthTAXAerialCU 0.0042 0.0059 0.0018 0.0003 0.0000AerialFO 0.0043 0.0045 0.0018 0.0003 0.0000Building 0.0052 0.0023 0.0022 0.0004 0.0000BuriedCU 0.0043 0.0047 0.0018 0.0003 0.0000BuriedFO 0.0044 0.0038 0.0018 0.0003 0.0000Circuit 0.0033 0.0076 0.0014 0.0002 0.0000Conduit 0.0049 0.0019 0.0020 0.0003 0.0000DSLAM 0.0033 0.0076 0.0014 0.0002 0.0000Furniture 0.0032 0.0052 0.0013 0.0002 0.0000Computers 0.0035 0.0136 0.0015 0.0002 0.0000Land 0.0075 0.0000 0.0031 0.0005 0.0000Microwave 0.0034 0.0092 0.0014 0.0002 0.0000MotorVehicles 0.0033 0.0097 0.0014 0.0002 0.0000OfficeSupport 0.0029 0.0085 0.0012 0.0002 0.0000Pole 0.0043 0.0061 0.0018 0.0003 0.0000Radio 0.0034 0.0092 0.0014 0.0002 0.0000Switching 0.0034 0.0069 0.0014 0.0002 0.0000Tower 0.0034 0.0035 0.0014 0.0002 0.0000UgdCU 0.0043 0.0046 0.0018 0.0003 0.0000UgdFO 0.0043 0.0043 0.0018 0.0003 0.0000

ReturnOnEquity 9.7% Return on EquityDebtRate 7.0% Debt RateDebtRatio 25.0% Debt RatioDiscountRate 9.00% Discount Rate

FederalTaxRate 34.0% Federal Tax RateStateTaxRate 5.3% State Tax Rate

Financial Data

Tax DataAccountEconomic

Life (years)Tax Life (years)

Future Net

Salvage (percent)

Land 0 0 0%Motor Vehicle 7.5 3 10%Tower 25 3 0%Radio 9 5 0%Microwave 9 5 0%Building 40 31.5 0%Furniture 15 5 10%Office Support 10 5 0%General Purpose Computers 6 5 0%Switching 12 5 0%Circuit/DLC 11 5 0%Pole 25 15 -75%Aerial Copper 20 15 -35%

Aerial Fiber 25 15 -25%Underground Copper 25 15 -30%Underground Fiber 25 15 -20%Buried Copper 20 15 -10%

Buried Fiber 25 15 -10%

Conduit 50 15 -10%

CostQuest CapCost Model

Bandwidth• Bandwidth:

• Supplied by the Coalition and consistent with the National Broadband Plan

• Provides the busy hour bandwidth • Used to size the appropriate network components

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Tech3 VoiceBandwidth DataLowBandwidth DataHighBandwidthFTTn 0.00 0.440 0.440 FTTd 0.00 0.440 0.440 FTTp 0.00 0.440 0.440

BusinessTake• Business Take

• Supplied by the Coalition, currently set at 90% of potential customers

• Provides the take rate for business customers by density and level of competition

• Can be supplied at the Census Track level

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Tech1 LowerCTDensity UpperCTDensity CT Tech3 GorB Competitors DataLowTakeRate DataHighTakeRate

TelcoLower Census Track HH Density

Upper Census Track HH Density Census track

Type of network: FTTd, FTTn, FTTp

Represents take for Greenfield (G) build or Brownfield (B) augmentation or ALL

Broadband Competitors (0, 1, 2)

% of Active customers with Broadband Voice only

% of Active customers taking Broadband data service

Telco 0 10000000 @ @ A 0 0% 90%Telco 0 10000000 @ @ A 1 0% 45%Telco 0 10000000 @ @ A 2 0% 30%

Capex• Capex

• Supplied by CostQuest based on inputs provided by the Coalition• Most inputs represent an average value from across coalition members

• Provides the material and installation costs for the plant build• Data is applied against the network topology data to derive total build out investment levels

• Inputs capture technology, network node, network function and plant sharing

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Capex

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COSize Tech2 Tech3 PlantMix Terrain Density PlantAcctCost Fam CostArea Units GorB

Min Capacity

Max Capacity

Unit Capacity

Material Amount

Non Material Amount

Total Amount NodeDemand Multiplier OutputField

ALL Copper FTTD NA NA % Circuit Dist CPE 1 A 0 10000000 1 35.44 13.99 0.00 T1.DataTake None Node4_CPEInv_SALL Copper FTTD NA NA % Circuit Dist CPE 1 A 0 10000000 1 0.00 0.00 0.00 T1.VideoTake None Node4_CPEVideoInv_SALL Copper FTTD NA NA % BuriedCU Dist NID 1 G 0 10000000 1 8.33 49.76 0.00 T1.DataTake None Node4_CCableInv_LALL Copper FTTD NA NA % BuriedCU Dist Drop 1 G 0 10000000 1 0.10 1.17 0.00 T1.Node4Cable DataTakeRate Node4_CCableInv_LALL Copper FTTD NA NA % BuriedCU Dist DTBT 1 G 0 10000000 1 136.11 130.18 0.00 T1.Node3EquipQty None Node3_CCableInv_LALL Copper FTTD Buried NA % BuriedCU Dist Conditioning 1 B 0 10000000 1 0.00 100.00 0.00 T1.Node4WorkingCust None Node3_CCableInv_LALL Copper FTTD Aerial NA % AerialCU Dist AerialCU 1 G 0 10000000 1 0.72 0.15 0.00 T1.Node3Cable None Node3_CCableInv_LALL Copper FTTD Buried NA % BuriedCU Dist BuriedCU 1 G 0 10000000 1 0.55 0.11 0.00 T1.Node3Cable None Node3_CCableInv_LALL Copper FTTD Ugd NA % UgdCU Dist UgdCU 1 G 0 10000000 1 0.56 0.12 0.00 T1.Node3Cable None Node3_CCableInv_LALL Copper FTTD Aerial NA % AerialCU Dist AerialCU 1 G 0 10000000 1 0.00 1.39 0.00 T1.Node3Cable DistPlacing Node3_CCableInv_LALL Copper FTTD Buried NA % BuriedCU Dist BuriedCU 1 G 0 10000000 1 0.00 0.01 0.00 T1.Node3Cable DistPlacing Node3_CCableInv_LALL Copper FTTD Ugd NA % UgdCU Dist UgdCU 1 G 0 10000000 1 0.00 1.67 0.00 T1.Node3Cable DistPlacing Node3_CCableInv_LALL Copper FTTD Aerial NA % AerialCU Dist AerialCU 1 G 0 10000000 1 0.00 1.73 0.00 T1.Node3CableSplice None Node3_CCableInv_LALL Copper FTTD Buried NA % BuriedCU Dist BuriedCU 1 G 0 10000000 1 0.00 1.71 0.00 T1.Node3CableSplice None Node3_CCableInv_LALL Copper FTTD Ugd NA % UgdCU Dist UgdCU 1 G 0 10000000 1 0.00 2.11 0.00 T1.Node3CableSplice None Node3_CCableInv_LALL Copper FTTD Aerial NA % AerialCU Dist AerialCU 1 G 0 10000000 1 0.00 63.54 0.00 T1.Node3CableSpliceSU None Node3_CCableInv_LALL Copper FTTD Buried NA % BuriedCU Dist BuriedCU 1 G 0 10000000 1 0.00 84.04 0.00 T1.Node3CableSpliceSU None Node3_CCableInv_LALL Copper FTTD Ugd NA % UgdCU Dist UgdCU 1 G 0 10000000 1 0.00 149.83 0.00 T1.Node3CableSpliceSU None Node3_CCableInv_LALL Copper FTTD Aerial Normal Rural Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureNormal StructureN Node3_ACStructureInv_LALL Copper FTTD Ugd Normal Rural Conduit Dist Conduit 0.67 G 0 10000000 1 5.34 14.49 0.00 T1.Node3StructureNormal StructureN Node3_UCStructureInv_LALL Copper FTTD Buried Normal Rural BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 3.40 0.00 T1.Node3StructureNormal StructureN Node3_BCStructureInv_LALL Copper FTTD Aerial Medium Rural Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureMedium StructureM Node3_ACStructureInv_LALL Copper FTTD Ugd Medium Rural Conduit Dist Conduit 0.67 G 0 10000000 1 5.34 15.05 0.00 T1.Node3StructureMedium StructureM Node3_UCStructureInv_LALL Copper FTTD Buried Medium Rural BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 4.13 0.00 T1.Node3StructureMedium StructureM Node3_BCStructureInv_LALL Copper FTTD Aerial Hard Rural Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureHard StructureH Node3_ACStructureInv_LALL Copper FTTD Ugd Hard Rural Conduit Dist Conduit 0.67 G 0 10000000 1 5.34 18.51 0.00 T1.Node3StructureHard StructureH Node3_UCStructureInv_LALL Copper FTTD Buried Hard Rural BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 5.68 0.00 T1.Node3StructureHard StructureH Node3_BCStructureInv_LALL Copper FTTD Aerial Normal Suburban Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureNormal StructureN Node3_ACStructureInv_LALL Copper FTTD Ugd Normal Suburban Conduit Dist Conduit 0.67 G 0 10000000 1 4.78 16.07 0.00 T1.Node3StructureNormal StructureN Node3_UCStructureInv_LALL Copper FTTD Buried Normal Suburban BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 6.16 0.00 T1.Node3StructureNormal StructureN Node3_BCStructureInv_LALL Copper FTTD Aerial Medium Suburban Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureMedium StructureM Node3_ACStructureInv_LALL Copper FTTD Ugd Medium Suburban Conduit Dist Conduit 0.67 G 0 10000000 1 4.78 16.09 0.00 T1.Node3StructureMedium StructureM Node3_UCStructureInv_LALL Copper FTTD Buried Medium Suburban BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 6.24 0.00 T1.Node3StructureMedium StructureM Node3_BCStructureInv_LALL Copper FTTD Aerial Hard Suburban Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureHard StructureH Node3_ACStructureInv_LALL Copper FTTD Ugd Hard Suburban Conduit Dist Conduit 0.67 G 0 10000000 1 4.78 19.95 0.00 T1.Node3StructureHard StructureH Node3_UCStructureInv_LALL Copper FTTD Buried Hard Suburban BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 7.22 0.00 T1.Node3StructureHard StructureH Node3_BCStructureInv_LALL Copper FTTD Aerial Normal Urban Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureNormal StructureN Node3_ACStructureInv_LALL Copper FTTD Ugd Normal Urban Conduit Dist Conduit 0.67 G 0 10000000 1 4.65 19.37 0.00 T1.Node3StructureNormal StructureN Node3_UCStructureInv_LALL Copper FTTD Buried Normal Urban BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 7.42 0.00 T1.Node3StructureNormal StructureN Node3_BCStructureInv_LALL Copper FTTD Aerial Medium Urban Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureMedium StructureM Node3_ACStructureInv_LALL Copper FTTD Ugd Medium Urban Conduit Dist Conduit 0.67 G 0 10000000 1 4.65 19.37 0.00 T1.Node3StructureMedium StructureM Node3_UCStructureInv_LALL Copper FTTD Buried Medium Urban BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 7.42 0.00 T1.Node3StructureMedium StructureM Node3_BCStructureInv_LALL Copper FTTD Aerial Hard Urban Pole Dist Pole 0.78 G 0 10000000 1 0.64 1.55 0.00 T1.Node3StructureHard StructureH Node3_ACStructureInv_LALL Copper FTTD Ugd Hard Urban Conduit Dist Conduit 0.67 G 0 10000000 1 4.65 23.73 0.00 T1.Node3StructureHard StructureH Node3_UCStructureInv_LALL Copper FTTD Buried Hard Urban BuriedCU Dist BuriedTrenchCU 0.41 G 0 10000000 1 0.00 7.42 0.00 T1.Node3StructureHard StructureH Node3_BCStructureInv_L

CapexCostFam CostArea Solution set OutputField Audit Report Output FieldCO

Eswitch Node0_ElectronicsInv_2 TotalNode0Investment_ElectronicsRouter Node0_ElectronicsInv_2 TotalNode0Investment_Electronics

DistCPE Node4_CPEInv_S TotalNode4InvestmentCPE Node4_CPEVideoInv_S TotalNode4InvestmentONT Node4_CCableInv_L TotalNode4InvestmentNID Node4_CCableInv_L TotalNode4InvestmentDrop Node4_CCableInv_L TotalNode4InvestmentAerialCU Node3_CCableInv_L TotalNode3InvestmentAerialFO Node3_FCableInv_L TotalNode3InvestmentBuriedCU Node3_CCableInv_L TotalNode3InvestmentBuriedFO Node3_FCableInv_L TotalNode3InvestmentBuriedTrenchCU Node3_BCStructureInv_L TotalNode3InvestmentBuriedTrenchFO Node3_BFStructureInv_L TotalNode3InvestmentConditioning Node3_CCableInv_L TotalNode3InvestmentConduit Node3_UCStructureInv_L TotalNode3InvestmentConduit Node3_UFStructureInv_L TotalNode3InvestmentDTBT Node3_CCableInv_L TotalNode3InvestmentFDT Node3_CCableInv_L TotalNode3InvestmentPole Node3_ACStructureInv_L TotalNode3InvestmentPole Node3_AFStructureInv_L TotalNode3InvestmentUgdCU Node3_CCableInv_L TotalNode3InvestmentUgdFO Node3_FCableInv_L TotalNode3Investment

HubAgg Node0_ElectronicsInv_2 TotalNode0Investment_ElectronicsBuilding Node0_LandBuildingOther_0 TotalNode0Investment_LandBuildingLand Node0_LandBuildingOther_0 TotalNode0Investment_LandBuildingOLT Node0_ElectronicsInv_2 TotalNode0Investment_Electronics

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CapexCostFam CostArea Solution set OutputField Audit Report Output FieldFdr

AerialFO Node2_FCableInv_2 TotalNode2Investment_FacilitiesBuriedFO Node2_FCableInv_2 TotalNode2Investment_FacilitiesBuriedTrenchFO Node2_BFStructureInv_2 TotalNode2Investment_FacilitiesConduit Node2_UFStructureInv_2 TotalNode2Investment_FacilitiesCOTFiberTerm Node2_FCableInv_2 TotalNode2Investment_FacilitiesDSLAM Node2_ElectronicsInv_2 TotalNode2Investment_ElectronicsDSLAM Node2_ElectronicsInv_S TotalNode2Investment_ElectronicsFDI Node2_CCableInv_2 TotalNode2Investment_FacilitiesFST Node2_FCableInv_2 TotalNode2Investment_FacilitiesFST Node2_FCableInv_L TotalNode2Investment_FacilitiesPole Node2_AFStructureInv_2 TotalNode2Investment_FacilitiesUgdFO Node2_FCableInv_2 TotalNode2Investment_Facilities

MMAerialFO Node0_FCableInv_0 TotalNode0Investment_FacilitiesBuriedFO Node0_FCableInv_0 TotalNode0Investment_FacilitiesBuriedTrenchFO Node0_BFStructureInv_0 TotalNode0Investment_FacilitiesCloud Node0_CloudEletronicsInv_S TotalNode0Investment_ElectronicsConduit Node0_UFStructureInv_0 TotalNode0Investment_FacilitiesPole Node0_AFStructureInv_0 TotalNode0Investment_FacilitiesROADM Node0_ElectronicsInv_C TotalNode0Investment_ElectronicsRouter Node0_ElectronicsInv_2 TotalNode0Investment_ElectronicsUgdFO Node0_FCableInv_0 TotalNode0Investment_Facilities

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COSizeAdjustment• COSize Adjustment

• Defaulted to 1s• Provides the user the capability to adjust the assumed purchasing power of small, medium and large providers

• Currently, the inputs assume that all providers can achieve the same purchasing power (either as a result of their size or their ability to buy as a consortium)

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Tech2 CoSize AdjRateCopper S 1Copper M 1Copper L 1Copper Y 1Copper Z 1Fiber S 1Fiber M 1Fiber L 1Fiber Y 1Fiber Z 1

Opex• Opex

• Supplied by CostQuest • based upon NECA, ARMIS, public reports, and information provided by Coalition members

• Provides the estimated operation costs to run and maintain a Broadband network, by technology type, by company size, by density, by function

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Opex

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Driver/CostType

P&L Format CostFam CostArea CostCntr CostElem QtyUOM (Driver)

‐17.49% 26.16% 22.05% 52.24%

Cost of Sales:Network Operations Expense Network Plant Specific Cable & Wire Expense CU Aerial Expense Investment CU Aerial Cable Investment 0.1863917 0.1863917 0.1233417 ‐26.96% 29.59% 47.82% 64.33%

FO Aerial Expense Investment FO Aerial Cable Investment 0.0375600 0.0375600 0.0494765 ‐26.96% 29.59% 47.82% 64.33%CU Buried Expense Investment CU Buried Cable Investment 0.0540978 0.0540978 0.0374454 ‐26.96% 29.59% 47.82% 64.33%FO Aerial Expense Investment FO Buried Cable Investment 0.0053131 0.0053131 0.0121196 ‐26.96% 29.59% 47.82% 64.33%CU Underground Expense Investment CU Underground Investment 0.1001540 0.1001540 0.0656569 ‐26.96% 29.59% 47.82% 64.33%FO Underground Expense Investment FO Underground Investment 0.0414877 0.0414877 0.0368124 ‐26.96% 29.59% 47.82% 64.33%Poles expense Investment Poles Investment 0.0255119 0.0255119 0.0191459 ‐26.96% 29.59% 47.82% 64.33%Conduit Systems expense Investment Conduit Investment 0.0037020 0.0037020 0.0027929 ‐26.96% 29.59% 47.82% 64.33%

####### ####### ####### #######Circuit Equipment / Transport Investment Circuit / Transport Investmen 0.0279932 0.0279932 0.0248874 0.01% 36.29% 40.66% 132.71%

####### ####### ####### #######Switching Investment Switch Investment 0.0847925 0.0847925 0.1194936 0.01% 36.29% 40.66% 132.71%

Plant Non-Specific Network Operating Expense Investment Total Plant Investment 0.0209635 0.0209635 0.0138417 ‐5.34% 13.76% ‐8.86% 7.62%

Backhaul Fast‐E lease Per Month Backhaul Aggregation Point (Wirece ‐$ ‐$ ‐$ 0 0 0 0Gig‐E lease Per Month Backhaul Aggregation Point (Wirece ‐$ ‐$ ‐$ 0 0 0 0

General Support & Network Support Expense Investment Total Plant Investment 0.0158211 0.0158211 0.0104291 ‐28.55% 14.73% ‐5.88% 23.08%

Customer Operations Marketing Customer Operations Sales & Marketing n/a n/a Customer Customer 3.62 3.62 3.62 0 ‐7.00% 24.01% 67.80%Customer Operations Marketing Customer Operations Sales & Marketing n/a n/a Investment Total Investment ‐ ‐ ‐ 4.70% ‐41.22% ‐67.35% ‐112.88%

Advertising n/a n/a TotalRevenue Total Revenue

G&A and Misc. General & Administration G&A n/a n/a Customer Customer ‐ ‐ ‐ 20.37% 81.46% 223.31% 526.47%G&A and Misc. General & Administration G&A n/a n/a Investment Total Investment 0.028023 0.028023 0.018842 18.08% 28.45% 102.56% 205.84%

G&A and Misc. Uncollectible revenue Bad Debt n/a n/a Customer Customer 0.92 0.92 0.92 0 0 0 0G&A and Misc. Uncollectible revenue Bad Debt n/a n/a Investment Alternative: Total Investment 0.29% 0.0028617 0.29%

Cost FaceUOM Driver Large

UrbanLarge

Suburban Large Rural

DENSITYMedium

size Company

(100,000 to 1,000,000

Loops)

Small Company (4,000 to 99,999 Loops)

SIZE ADJUSTMENT

Code Source

XSmall Company (1,000 to

3,999 Loops)

XXSmall Company (< 100,000

Loops)

PlantMix• PlantMix

• Supplied by CostQuest based on input from the Coalition• Inputs provided by State and Density

• Provides the estimated mix of cable by type: aerial, buried and underground

• Used in drive determine the type of cable required on a route

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CostFam>>State Density Aerial Buried Underground Aerial Buried Underground Aerial Buried Underground@ Rural 27.10% 69.17% 3.73% 25.35% 60.66% 13.99% 27.57% 58.49% 13.94%@ Suburban 30.37% 64.01% 5.62% 23.74% 48.57% 27.70% 24.00% 47.65% 28.34%@ Urban 38.11% 54.60% 7.30% 19.45% 40.24% 40.31% 19.51% 39.96% 40.52%AL Rural 29.29% 70.43% 0.28% 29.33% 65.82% 4.85% 29.33% 65.82% 4.85%AK Rural 27.10% 69.17% 3.73% 25.35% 60.66% 13.99% 27.57% 58.49% 13.94%AZ Rural 27.10% 69.17% 3.73% 25.35% 60.66% 13.99% 27.57% 58.49% 13.94%AR Rural 14.00% 85.40% 0.61% 4.74% 88.94% 6.32% 4.74% 88.94% 6.32%CA Rural 26.73% 63.23% 10.04% 21.53% 55.69% 22.78% 21.43% 57.22% 21.35%CO Rural 4.35% 95.52% 0.13% 2.40% 95.44% 2.16% 2.40% 95.44% 2.16%CT Rural 77.97% 17.56% 4.47% 61.53% 33.13% 5.34% 61.53% 33.13% 5.34%DC Rural 87.80% 6.10% 6.10% 9.40% 0.00% 90.60% 10.40% 0.00% 89.60%DE Rural 28.20% 71.70% 0.10% 32.20% 64.50% 3.30% 58.50% 37.10% 4.40%FL Rural 16.46% 83.10% 0.44% 13.94% 78.27% 7.79% 18.81% 73.30% 7.89%

Dist FDR IOF

PTax• PTax

• Supplied by CostQuest• Sourced from property tax rates in each state• Provides the impact of property tax to various operating costs• Used to capture the impact of property tax in the operation costs

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State AdjRateAK 1.0514AL 0.9029AR 0.9664AZ 0.9804CA 0.9745CO 0.9649CT 1.0318DC 0.9979DE 0.9880FL 0.9871GA 1.0378HI 0.9874

RegionalCostAdjustment• RegionalCostAdjustment

• Supplied by CostQuest• Sourced from third party source ‐ RSMeans• Provides the estimated difference in the cost to build and operate in each part of the county

• Captures material and labor costs difference• Captured at the Zip3 level• Used in drive differences in CAPEX and OPEX costs due to labor and material cost differences across the country.

• Applied to All CAPEX and indirectly to OPEX components

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RegionalCostAdjustment

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State Zip3 City AdjRateNA 000 NA 0.93NA 001 NA 0.93NA 002 NA 0.93NA 003 NA 0.93NA 004 NA 0.93NY 005 MID-ISLAND 0.99PR 006 SAN JUAN 0.78PR 007 SAN JUAN 0.78PR 008 SAN JUAN 0.78PR 009 SAN JUAN 0.78MA 010 SPRINGFIELD 1.04MA 011 SPRINGFIELD 1.04MA 012 PITTSFIELD 1.02MA 013 SPRINGFIELD 1.02MA 014 CENTRAL 1.07MA 015 CENTRAL 1.10MA 016 WORCESTER 1.10MA 017 CENTRAL 1.11MA 018 MIDDLESEX-ESX 1.13MA 019 MIDDLESEX-ESX 1.13MA 020 BROCKTON 1.18MA 021 BOSTON 1.18MA 022 BOSTON 1.18MA 023 BROCKTON 1.12MA 024 NORTHWEST BOS 1.18MA 025 CAPE COD 1.07MA 026 CAPE COD 1.09RI 027 PROVIDENCE 1.10RI 028 PROVIDENCE 1.05RI 029 PROVIDENCE 1.05

StateSalesTax• StateSalesTax

• Supplied by CostQuest• Sourced from appropriate tax rates in each state• Used in CAPEX derivation Se

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State SalesTaxAL 0.0715AK 0.0086AZ 0.0777AR 0.0736CA 0.0796CO 0.0475CT 0.06DC 0.0575DE 0FL 0.0663GA 0.0676HI 0.0438

ResidentialTakeRate• Residential TakeRate

• Supplied by the Coalition, currently set at 90% of potential customers

• Provides the take rate for residential customers by density and level of competition

• Can be supplied at the Census Track level

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Tech1 LowerCTDensity UpperCTDensity CT Tech3 GorB Competitors DataLowTakeRate DataHighTakeRate

TelcoLower Census Track HH Density

Upper Census Track HH Density Census track

Type of network: FTTd, FTTn, FTTp

Represents take for Greenfield (G) build or Brownfield (B) augmentation or ALL

Broadband Competitors (0, 1, 2)

% of Active customers with Broadband Voice only

% of Active customers taking Broadband data service

Telco 0 10000000 @ @ A 0 0% 90%Telco 0 10000000 @ @ A 1 0% 45%Telco 0 10000000 @ @ A 2 0% 30%

TakeRate

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CQBATNETWORKCAPEXOVERVIEW

Middle mileNetwork routingAssumptionsTesting

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NetworkOverview

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CXR HotelISP

Internet Gateway

DWDM Gear

Node 00Regional Tandem

(RT)

DWDM Gear


(RT)

DWDMGear


(RT)

DWDMGear

Node 0Central Office(POI, CLLI)

Edge Router AggGear


Edge Router AggGear


Edge Router AggGear


Edge Router AggGear


Edge Router AggGear


Edge Router AggGear


Edge Router AggGear

Remote Terminal

RT

RTRT

RTRT

Internet Transit Internet Transit

Node 00s Interconnected

By RingPer LATA

Middle MileFeeder

Middle MileDistro

2nd Mile

Last Mile

Cost Pro1st and 2nd Mile

Middle Mile Feeder

Calculations

Middle Mie Distro

Calculations

MiddleMile• Middle mile connects central offices with “the cloud” (Internet gateways) via connection to point of interconnection at a tandem within the LATA

• Method:• Start with identifying the nearest access to a Tier 3 Internet gateway for each CO (Node0/POI)

• A surrogate for such access is assumed to be on a regional access tandem ring within the LATA

• Regional tandem (“RT”) locations were obtained from the LERG database

• Each tandem identified as providing Feature Group D access in LERG 9 is designated an RT

• The underlying logic (and the process) of developing middle mile investment requirements are grounded in the assumption that the Internet Gateway peering point is located on the RT ring – meaning that if the modeled design ensures each central office is connected to an RT ring, the corresponding Node0 customers all have access to the Internet

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MiddleMile• The middle mile processing logic proceeds as follows:

• The Middle Mile process is run state by state• All CLLIs in a state are homed to the closest RT in that same state• The RT location is assumed to be where the Internet Gateway is located

• CLLI locations are then routed to other CLLI locations with the same RT parent using a spanning tree approach based on the shortest distance routing back to their parent RT location

• For cases where multiple RTs exist within a LATA, all the RTs within the same LATA are routed together in a ring

• To ensure an efficient design the shortest ring distance is used

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Node0toNode00,Node00Rings

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MiddleMile• With the routing information in hand, CQBAT develops middle mile costs:• The distance of the RT rings is attributed to each CLLI on the ring in

proportion to the number of service locations at each CLLI as compared to the total service locations for all the CLLIs attached to the RT Ring

• The distance/cost from the CLLI back to the RT is attributed to each CLLI based on the cumulative service locations that can use the route

• For electronics, CQBAT places an Ethernet switch in each CLLI• This Ethernet switch is connected to a router that may serve one CLLI or multiple• If the distance to the RT exceeds a user‐specified distance, a regeneration unit is

placed to extend the distance• This router/regenerator is then assumed to be the last piece of costed equipment in

the broadband costs that are developed• For the fiber placement, CQBAT assumes a percentage of conduit and poles

are included in the Loop plant• For the route‐related costs, CQBAT assigns only a portion to the broadband

network (current value set at ½) based on the assumption that the transport network is built for multiple purposes

• CQBAT broadband services and leased dedicated data services

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MiddleMile

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Node0ID Node00ID LATA State Node0Length Node0Cable

Node0 Structure Normal Suburban

Node0 Terrain

Node0 Density

Node0 WorkingLines

Node00 WorkingLines

LATA WorkingLines

Node00 Node0Counts

LATA Node0 Counts

LATA Node00 Counts

SHWMALXA ANTNALMT0GT 476 AL 683,007 62,817 62,817 N R 1,126 139,353 968,557 30 140 4 LNDLALXA ANTNALMT0GT 476 AL 667,696 209,518 209,518 N R 4,966 139,353 968,557 30 140 4 HGLYALXA ANTNALMT0GT 476 AL 636,984 104,723 104,723 N R 2,819 139,353 968,557 30 140 4 LFYTALRS ANTNALMT0GT 476 AL 578,181 111,599 111,599 N R 3,653 139,353 968,557 30 140 4 FRDNALXA ANTNALMT0GT 476 AL 520,421 7,811 7,811 N R 301 139,353 968,557 30 140 4 RCMLALXA ANTNALMT0GT 476 AL 443,736 17,193 17,193 N R 860 139,353 968,557 30 140 4 RONKALXA ANTNALMT0GT 476 AL 415,893 88,776 88,776 N R 4,942 139,353 968,557 30 140 4 GDWRALMA ANTNALMT0GT 476 AL 352,511 161,641 161,641 N R 2,114 139,353 968,557 30 140 4 WDLYALXA ANTNALMT0GT 476 AL 340,452 19,505 19,505 N R 1,401 139,353 968,557 30 140 4 WDLDALXA ANTNALMT0GT 476 AL 245,748 54,730 54,730 N R 1,680 139,353 968,557 30 140 4 WEDWALXA ANTNALMT0GT 476 AL 254,826 19,561 19,561 N R 2,026 139,353 968,557 30 140 4 ASLDALXA ANTNALMT0GT 476 AL 228,141 67,050 67,050 N R 3,803 139,353 968,557 30 140 4 TLDGALRF ANTNALMT0GT 476 AL 191,559 77,599 77,599 N R 4,294 139,353 968,557 30 140 4 PLCYALXA ANTNALMT0GT 476 AL 211,688 154,481 154,481 N R 13,848 139,353 968,557 30 140 4 MRCRALXA ANTNALMT0GT 476 AL 203,322 7,815 7,815 N R 1,067 139,353 968,557 30 140 4 LNVLALXA ANTNALMT0GT 476 AL 195,031 28,414 28,414 N R 2,361 139,353 968,557 30 140 4 LECTALXA ANTNALMT0GT 476 AL 195,799 85,399 85,399 N R 1,557 139,353 968,557 30 140 4 PDMTALMA ANTNALMT0GT 476 AL 146,673 100,850 100,850 N R 4,751 139,353 968,557 30 140 4 TLDGALMA ANTNALMT0GT 476 AL 143,078 83,423 83,423 N R 12,302 139,353 968,557 30 140 4 RGLDALXA ANTNALMT0GT 476 AL 203,208 71,469 71,469 N R 2,254 139,353 968,557 30 140 4 DELTALXA ANTNALMT0GT 476 AL 132,401 4,549 4,549 N R 1,018 139,353 968,557 30 140 4 LNCLALXA ANTNALMT0GT 476 AL 146,228 19,285 19,285 N R 3,000 139,353 968,557 30 140 4 HFLNALXA ANTNALMT0GT 476 AL 133,370 40,289 40,289 N R 2,731 139,353 968,557 30 140 4 CHLFALXA ANTNALMT0GT 476 AL 83,078 4,137 4,137 N R 1,368 139,353 968,557 30 140 4 MNFDALMA ANTNALMT0GT 476 AL 77,574 4,696 4,696 N R 1,657 139,353 968,557 30 140 4 JCVLALMA ANTNALMT0GT 476 AL 73,606 45,537 45,537 N R 7,787 139,353 968,557 30 140 4 OHTCALMA ANTNALMT0GT 476 AL 70,334 74,075 74,075 N R 3,994 139,353 968,557 30 140 4 ANTNALLE ANTNALMT0GT 476 AL 29,346 20,188 20,188 N R 8,710 139,353 968,557 30 140 4 ANTNALOX ANTNALMT0GT 476 AL 23,535 20,571 20,571 N R 14,824 139,353 968,557 30 140 4 ANTNALMT ANTNALMT0GT 476 AL ‐ 20,736 20,736 N R 22,139 139,353 968,557 30 140 4 YORKALMA BRHMALHW0GT 476 AL 808,598 216,257 216,257 N R 3,181 273,606 968,557 29 140 4 LVTNALLA BRHMALHW0GT 476 AL 747,586 184,967 184,967 N R 3,790 273,606 968,557 29 140 4 EUTWALBO BRHMALHW0GT 476 AL 601,842 29,961 29,961 N R 1,074 273,606 968,557 29 140 4 EUTWALMA BRHMALHW0GT 476 AL 590,507 144,332 144,332 N R 5,449 273,606 968,557 29 140 4

Sample File of Network Topology in CQBAT

MiddleMileCost• In BAM effort, monthly costs were tested against tariffed rates and found be reasonable by the FCC

• In CQBAT• Average Monthly cost for Node0 components is $3,000 Se

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Q/A

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CAF2 Model Overview Part1 V2 - FCCtransition.fcc.gov/wcb/tapd/universal_service/caf/CAF2... · 2012-09-13 · retail costs, structure sharing percentages, fiber‐copper cross‐over

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